BCBusiness

The Monthly Informer 21 THE EXPLAINER Columnist Timothy Taylor on why investing in perks still matters 22 NUMEROLOGY Sugar's sweet place in the B.C. economy—and the impact of TPP 23 TECHNOLOGY Your business is being held for ransom. Now what do you do? 24 GRAPH Vancouver real estate has always been expensive—and we have proof! 27 THE CONVERSATION Outspoken architect Gregory Henriquez gets political 31 D-I-Y MANAGEMENT Why "†t" matters when hiring—and how to spot it 33 THE AGENDA Nourishment for the corporate mind and soul ROCk On! YVR's director of customer care, Reg Krake, takes to the ice at the Vancouver Curling Club 10 BCBusiness OCTOBER 2016 TOp: pAUL JOSEpH; BOTTOM: VICTORIA pARK contents Oine 89 WATERCOOLER Will workplace automation leave anybody standing? 90 JARGON WATCH The 19th-century roots of au courant word "ideation" 93 WEEKEND WARRIOR YVR's Reg Krake knows how to hurry, hurry hard 93 NEW + IMPROVED The latest developments in the world of lifestyle 95 TRAVEL Scottsdale, in suburban Phoenix, embraces the bike 99 ABOUT TOWN Top 100, our networking event of the year, brings out the stars 100 LUNCH WITH LUCY Infrastructure guru Jane Bird on lessons learned from Canada Line OC TOBER 2016 CHATTER Editor's Desk Building the future p.16 ... Feedback What you said p.19 Q: What should an entrepreneur know about stock options? A: An entrepreneur desires a motivated and engaged team to achieve success. Compensation is a key component in building a strong team and stock options can be an attractive incentive, for top talent, that preserves cash for a growing business. The amount of stock options earned can be tied to performance objectives which may include sales targets, product development milestones, or even length of employment, which may help with retention. Stock options allow their holders to participate in a company's future growth because exercise prices are set on the issuance date. When the share value increases, substantial benefi ts are received from these gains in future value. Entre- preneurs should realize that public companies listed on a stock exchange aren't the only companies that can issue stock options, private companies can also benefi t from this strategy as well. Q: What are the tax advantages to issuing stock options? A: There are signifi cant tax advantages when a company issues stock options to employees. Generally, when a company has agreed to issue its shares to an employee, a benefi t is realized in the year that the shares are acquired, equal to the amount by which the value of the shares, at the time of acquisition, exceeds the amount paid. However, provided that the option is granted by a Canadi- an-controlled private corporation ("CCPC") and the employee deals at arm's length with the company, the income inclusion is deferred to the year in which the employee disposes of the shares. In addition to the deferral of the tax, there are related rules which allow for a deduction equal to one-half of the ben- efi t included in the employee's income. Generally, this deduction is available if the employee held the shares for at least two years. ASK AN ADVISOR L: Joseph Bonvillain, CPA, CA R: Steve Reed, CPA, CA Offi ces located in Vancouver & Abbotsford, British Columbia, Canada Visit us at www.manningelliott.com Have Additional Questions? Call 604-714-3600 Taking your business to the next level requires guidance and expert planning from a fi rm you can trust. To learn more, contact one of our trusted business advisors today.

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