PSU’s, RSU’s and Stock Options Calgary – Performance Share Units, Restricted Stock Units

PSU’s, RSU’s and Stock Options Calgary – Performance Share Units, Restricted Stock Units

The opportunity to have a little piece of ownership within the companies they work for is a desirable idea for many hard-working Calgarians. Through stock options such as PSU’s and RSU’s, companies can give their employees a small stake in the business.

However, what will happen to these stocks after your dismissal? Do you fully understand the terms in your employment agreement around them?

Performance stock units (PSU’s) and restricted stock units (RSU’s) provide employees the unique opportunity to gain ownership stakes within the company they work for. This is common in many businesses because it attracts and retains talent.

Employee stock options are typically offered to staff at a fixed price for a specific time frame. During this period, employees have the opportunity to invest in the company for a reasonable price, and in turn, are more motivated to have the business perform well.

Can I keep my stock options if I lose my job?

This can be a tough topic for employees to address with the former employers that have let them go. Depending on the situation behind the termination, your ability to maintain your stock options will differ. In many termination “with cause” situations, the employer will cancel stock options that have not been exercised.

Don’t lose hope. If you’ve been recently terminated by your employer, we can help you address your stock options with confidence and fairness.  We will review the terms of your employment agreement to ensure your rights are being respected during this challenging time.

Calgary PSU’s, RSU’s and Stock Options - Calgary employment lawyers, performance share unit, restricted stock unit

Factors that can determine whether or not you would have stock options after leaving your position:

  • Are your shares vested?
  • Have you exercised them?
  • What type of compensation has been negotiated?
  • What are the terms and agreements within your employment agreement?
  • What are the conditions surrounding your exit from the company? (E.g. dismissal, retirement, a new job opportunity, etc.)

With PSU’s, RSU’s and stock options, the fine print matters

Before signing any employment agreement, you should have a clear understanding of the terms and conditions around your stock options. There could be terms and clauses hidden behind all that legal jargon.

By seeking sound legal advice from one of our Calgary employment lawyers, we can help you negotiate the terms around your stock options. We’ll make sure the conditions in your agreement benefit you rather than the employer.

If we see any red flags, we will help you negotiate with your employer to prevent significant losses in the event of a company downsizing or layoff.

Let a dedicated employment lawyer review the terms around your stock options

We review, draft, advise on all employment agreements and restrictive covenants of all nature. Our Calgary employment lawyers can assess whether your employment agreement is reasonable and adequately prepared.

Although it can feel uncomfortable asking for time to review your contract, it’s necessary to protect yourself from future hardships.

Be proactive with your assets
Seek legal advice
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Contact Osuji & Smith Employment Lawyers for all your employment law-related inquiries at 403-283-8018 or fill out the online contact form for more details.

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