Thought Capital

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Navigating Long-Term Incentives for Private Companies

Privately-owned companies in Canada benefit from less regulatory scrutiny and favorable taxation of stock options compared to public companies, especially for Canadian-controlled private companies (CCPCs). However, recent changes to capital gains tax rates and previous adjustments to stock option taxation have affected larger non-CCPCs. While private companies face challenges in structuring and administering equity compensation due to the absence of public market valuations, public companies continue to set competitive standards with long-term equity awards. Companies with cross-border operations must carefully design LTIPs to comply with both Canadian and U.S.

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2024 TSX Proxy Season Insights: Shareholder Proposals

As of October 20, 2024, 82 shareholder proposals have been voted on at Canadian issuers in 2024, 55 of which have been at TSX60 issuers. Of these 82 proposals, 38% were Environmental, 33% Governance, 20% Social, and 9% Compensation-related. There was only one Operational proposal regarding anticompetitive practices, which garnered 13% support (Metro Inc.).