Kiss your pay raise, COLA goodbye? Again

Will the White House and Congress stick with their regular game plan of seeking major cuts in the federal retirement programs again this year? Will the budget coming next week once again seek major cuts in federal retirement programs, even though previous attempts have failed, but not before scaring many government workers and retirees? READ MORE

Ten Considerations for Performance-Based Compensation

With the dawn of the new year, many companies are taking the initial steps that they hope will allow them to meet their financial and strategic goals in 2020 and beyond.  Often, one core element of this process is designing a system of performance awards that will be granted to the executive team, with the intent to motivate executives to achieve the company’s goals by aligning the executive team’s interests with the performance of the company.   Performance awards can come in many forms, including stock options, performance-vesting restricted stock or stock units, or cash bonuses.  The process of designing performance awards is often messy because there are too many choices and too many unknowns, and companies must also face the risk of inadvertently designing a program that could incentive bad behavior.   As you think about your performance awards, here are ten considerations to keep in mind: READ MORE

Everything you need to know about the government's new stock option taxation rules

Last week, the federal government introduced draft legislation that proposes to limit the preferential tax treatment associated with certain employee stock options. The new rules, originally introduced in the March 2019 federal budget, fulfill a 2015 Liberal party election platform promise to limit the benefits of the stock option deduction by placing a cap on how much can be claimed. At the time, the Liberals quoted a Department of Finance estimate which found that 8,000 “very high-income Canadians deduct an average of $400,000 from their taxable incomes via stock options.” READ MORE