Shopify (NYSE: SHOP), an e-commerce subscription-based software platform that lets SMEs start and manage their businesses, is anticipating a 10-for-1 equity split, as well as shareholder approval for a “founder share” for its CEO Tobi Lutke to increase his voting power. Shopify will authorize and issue a new class of non-transferable founder shares to Lutke, giving him a total voting power of 40% when combined with his current Class B shares, pending shareholder approval. The proposed 10-for-1 split of Shopify’s Class A and Class B shares requires at least two-thirds of shareholder votes to be approved. Investors will get nine additional Class A or Class B shares for every one share held after the close of business on June 28 if the proposal is adopted. A stock split could increase retail share ownership since the lower stock price is more accessible to a wider variety of investors.
Shopify plans a 10-for-1 stock split, eyes ‘founder share’ to protect CEO’s voting power