Public and Private Company Compensation
Whether you have recently incorporated a private company or you have been in operation for a number of years with the intention of going public, executive compensation schemes are one of the foremost considerations for companies.
Both public and private company directors need to consider balancing the objectives of attracting high-end talent, tax ramifications and director compensation schemes.
In addition to compensation schemes, government regulations (provincial and federal) and shareholder concerns are some of the other considerations that a company must make.
Executive Compensation typically accounts for the following:
- Termination Payments
- Severance Packages
- Industry of the companies. Some industries take longer than others
Along with the typical provisions in an employment agreement such as confidentiality, intellectual property, compensation, representations and restrictive covenants, an executive compensation scheme typically outlines pension and tax considerations in an employment contract.
Public Company Disclosure
Under Canadian securities laws, public companies must disclose specific aspects of a public company’s executive compensation schemes.
For instance, the Statement of Executive Compensation Form, also known as Form 51-102F6- requires a public company to provide detailed management compensation in an annual management proxy circular and management must also provide a discussion and analysis of the compensation of all executive officers.
For more information on executive compensation schemes, get in touch with us today. Call us at 604-930-9578 or 1-800-930-9986. Our experienced counsel are ready to assist you with your disclosure requirements.