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Stock Option Agreement Canada

The ability of employees to participate in the ownership and growth of the company can be a motivating tool that balances the interests of employees and owners. The granting of stock options must take into account many factors for options to be valuable and effective. Staff Selection – When selecting people who should have the opportunity to participate in a stock option plan, careful thought should be given. Key long-term employees in management roles, who can have a direct impact on the company`s growth and performance, are ideal candidates. They should play a role that allows for important decision-making, such as for example. B senior management or executives, as they are most likely to influence the company. The number of stock options granted should reflect the total compensation you are willing to give to that employee. The global options combined with the exercise price are added to the overall offer through the options. It is important to consider the overall level of ownership if all options were exercised in the future. A significant influx in the number of shares issued by the company will have a dilutive effect on shareholders who do not have stock options..

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