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ARTICLE · 15 FEBRUARY 2014

Bonuses And Stock Options: Contractual And Otherwise

When assessing what type of termination package to offer an employee or what the employer’s liability for damages is, non-salary compensation can become an issue.

CanadaEmployment and HR

When assessing what type of termination package to offer an employee or what the employer's liability for damages is, non-salary compensation can become an issue. Typically, this compensation may include stock options, stock grants and bonuses. If not resolved at termination (or shortly thereafter) a determination of "qualification" or "what it's worth" can contribute to prolonged and protracted issues between parties. You can guess what that means. This article discusses what you need to know to provide a fair and reasonable termination package when it comes to non-salary compensation.

Bonuses

Upon termination, employees will be entitled to compensation for bonuses they would have earned during the reasonable notice period if there is a bonus structure worked into the employee's contract and/or if the bonus can be said to be an integral part of the employee's remuneration package. Even if it is not expressly agreed between the employee and the employer that a

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