Shopify said it plans a 10-for-1 stock split and will give chief executive Tobi Lutke a special "founder share" that will preserve his voting power as long as he's at the company.
The Canadian e-commerce software firm said Monday the new structure would “strengthen the foundation for long-term stewardship by Mr Lutke,” the company’s founder. Under the plan, Mr Lutke, his family and his affiliates would together retain 40 per cent of the votes at the company, even as their ownership stake changes.
Shopify was up 0.3 per cent at $604.07 in New York at 11am.
Mr Lutke (41) would have to give up his founder share if he was no longer with the company as an executive, director or consultant, Shopify said in a statement Monday. He would not be allowed to transfer it to anyone else.
Special share
He would also forfeit the special share if his ownership stake – including family members and affiliates – drops below 30 per cent of the number of class B shares they have today.
Shopify soared above 250 billion Canadian dollars ($198 billion) in market value during the pandemic as online selling took off, but it has given back most of those gains. The shares are down 56 per cent this year. – Bloomberg
