Document background
This document is used when a Canadian company or a company operating in Canada wishes to grant restricted stock units (RSUs) to its employees, directors, or consultants as part of their compensation package. The Restricted Stock Unit Agreement sets forth the terms under which the participant receives the right to acquire shares or receive cash payments based on the company's stock value at future dates. It is essential for companies offering equity-based compensation in Canada, as it must comply with provincial securities laws, the Income Tax Act, and relevant employment standards. The agreement typically forms part of a broader equity incentive plan and includes specific provisions for Canadian tax treatment, including tax withholding requirements and available elections under Canadian tax law. It's particularly relevant for public companies and private companies planning to go public, helping them attract and retain talent while aligning employee interests with company growth.
