Hugessen Consulting

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.