The Shopify logo is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018.
Chris Wattie | Reuters
E-commerce startup Shopify said on Monday it plans a 10-for-1 stock split, while seeking shareholder approval for a “founder’s share” for its CEO Tobi Lutke to boost its voting power.
Following shareholder approval, Shopify will authorize and issue the new class of shares to Lutke, giving the executive an aggregate 40% voting right when combined with his existing Class B shares.
“Tobi is essential to supporting and executing Shopify’s strategic vision and this proposal ensures his interests are aligned with building long-term shareholder value,” Robert Ashe, Shopify’s senior independent director, said in a statement.
Shares of Shopify rose more than 1.5% on Monday before market.
The Ottawa-based company has received a big boost over the past two years as it has helped small businesses get their operations online quickly during the pandemic’s enforced shutdowns. The stock has climbed around 185% in 2020 and another 21% in 2021. However, shares have fallen more than 50% since the start of the year as the pandemic surge began to unfold. blur.