Thanks, Trevor.
Thank you for your question.
The purpose of this measure is to further limit the stock option deduction for employees of certain employers.
We propose to apply an annual limit of $200,000 with option cash-out rights eligible for the deduction. This limit would be based on the fair market value of the underlying shares when the options are granted and would be designed to protect start-ups and emerging businesses.
Employees of private companies governed by Canadian regulations wouldn't be subject to the limit, nor would employees of companies with gross annual revenues of $500 million or less. That's the gist of the measure.