Shopify (SHOP) shareholders have granted company Chief Executive Officer (CEO) Tobi Lutke
special voting rights, enhancing his control of the e-commerce company.
Shareholders voted in favor of a proposal to create a “founder share” for Lutke, ignoring the
advice of two prominent advisory firms. The change guarantees Lutke at least 40% of the voting
rights at the company under certain conditions, including that he remains at the helm of Shopify.
Shopify had argued that the proposal would benefit shareholders by ensuring Lutke maintains
an active role at the Ottawa-based company. To pass, the proposal required a majority of the
votes cast by shareholders.
Shopify announced the proposal in April. Shareholder advisory firms Glass Lewis & Co. and
Institutional Shareholder Services urged investors to reject it. The California Public Employees’
Retirement System had indicated that it would vote against the proposal.
Shareholders also voted in favor of a 10-for-1 stock split to be executed later this year.
Shopify’s stock has fallen 72% this year to $380.74 U.S. a share.
