Document background
The Restricted Stock Unit Award Agreement is a fundamental document used by Canadian companies to grant equity-based compensation to employees and other eligible participants. This agreement is typically implemented when a company wishes to provide long-term incentives, retain key talent, or align employee interests with company performance, while complying with Canadian securities regulations, tax laws, and employment standards. The document details the specific terms of the RSU grant, including the number of units awarded, vesting conditions, settlement procedures, and tax implications. It operates within the framework of the company's equity incentive plan and must adhere to requirements set forth by provincial securities regulators, the Canada Revenue Agency, and relevant stock exchanges if the company is publicly traded. The agreement becomes particularly important for companies looking to establish competitive compensation packages while managing their equity dilution and ensuring proper corporate governance.
