Shopify shareholders voted on Tuesday to shore up the vote weight of the company’s founder and CEO, Tobi Lütke, for as long as he works there and ensure that he, his family and affiliates hold 40% of the company’s voting rights.
Posted at 11:06 a.m.
The approval won at Shopify’s annual general meeting sets the stage for a new corporate governance structure that will grant Mr. Lütke non-transferable founder shares.
The proposal has faced opposition from at least one consultancy, Glass, Lewis & Co, which says the move limits shareholder rights and inadequately protects minority shareholder interests.
Shareholders also approved a 10-to-1 split of Class A and B shares. Shopify argued it was a way to make voting shares more affordable for a wider segment. population and diversify its ownership base.
Shopify did not immediately say how much approval margin it got for the two metrics.
The changes come as Shopify’s share price has plunged in recent months, even though company executives, including Mr. Lütke, stressed a month ago on social network Twitter that they bought shares to demonstrate their confidence in the future performance of the company.