Stock options remain one of the most valuable and flexible forms of employee compensation in Canada. They are used to reward key employees, support retention, align interests with growth, and in many private companies, substitute for cash compensation. Yet stock options also create some of the most complicated tax outcomes for employees and employers, especially when market value declines, vesting conditions change, or agreements are structured incorrectly.

Stock Options and Employee Incentive Programs provides a clear and practical exploration of how equity-based compensation works in Canadian tax practice, with a strong focus on stock options. The course begins by outlining why companies use stock options, how they fit within broader compensation strategies, and the key tax questions CPAs must answer before a plan is implemented.

The course walks through the core mechanics of stock options, including how benefits are calculated, how timing affects tax results, and how the rules differ between CCPC and non-CCPC employers. Participants gain a practical understanding of the 50 percent deduction, vesting considerations, strike price decisions, and the impact of share value changes on after-tax outcomes. The session also explains how stock option benefits influence adjusted cost base, future capital gains, and employee cash flow planning.

Learn the real issues that arise in practice, such as setting an appropriate exercise price, managing withholding obligations, and addressing liquidity challenges when employees must fund exercise costs or taxes. The material highlights the importance of shareholder agreements, buyback terms, vesting schedules, and the governance considerations that arise when employees become shareholders.