Employee Stock Compensation EXPLAINED (RSU vs ESPP vs Stock Options)

Nowadays companies like to offer a wide range of benefits other than salary to attract and retain employees. Out of all these benefits offering stock is one of the most attractive perks. Generally there are 3 major stock programs: Restricted Stock Unit (RSU), Employer Stock Purchase Plan (ESPP), and Stock Options. Though they are popular they can also be quite confusing when it comes to how it works and the tax scheme when employees acquire or sell them. In this video we are going to through the basics of each program and talk about how you may want to handle them. Lastly we will talk about the new stock option rule that may affect your tax effectiveness!

This is not financial advice!

#canada #stockoption #finance

▼ Time Stamps

[0:00] Start
[1:01] PSA: consult CPA!
[1:15] Restricted Stock Unit - What is it
[1:56] Restricted Stock Unit - Taxes
[2:40] Employer Stock Purchase Plan - What is it
[3:43] Employer Stock Purchase Plan - Taxes
[4:45] Best way to handle RSU and ESPP
[6:25] Sponsor: Skillshare
[7:23] Employee Stock Options
[9:15] New tax law for some stock option programs

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[Akhil]

Hi do you know if that new rule related to stock options has passed? It seems like it’s still just a proposal?

[HamzaHamid]

Would you recommend selling ESPP and repurchasing Via TFSA? If you plan to hold? So that future gains are tax free?

[johnnyv]

I believe I would fall under the Employee Stock Option, if you dedicate a percentage of your salary to the purchase of stock my company will match one third of your amount up to a max. but you need to hold the shares they give you for a minimum of 2 years. What are my tax implications in this scenario when I sell shares?

[eastwest]

Hi I am looking for a good financial advisor in Ontario, please advise

[yandhi]

11:03 HAHAH dislike button twice
Great video thanks !!

Hmm so basically, with stock options, is this not an excellent form of compensation vs. salary? seems like its taxed less than salary since its 50% correct?