Shopify’s Founder-Share Proposal Is Opposed by Glass Lewis
- Plan limits minority shareholder rights, advisory firm says
- Its stock has slumped nearly 80% from its November peak
Signage on Shopify headquarters in Ottawa
Photographer: James Park/BloombergThis article is for subscribers only.
Shopify Inc.’s plan to give Chief Executive Officer Tobi Lutke a special “founder share” that will preserve his voting power is being opposed by prominent shareholder advisory firm Glass Lewis & Co.
The plan by the e-commerce company carries “inadequate protection” for the interests of minority shareholders and limits their rights, according to a filing Friday. “Ultimately, while we acknowledge the board’s concerns around the approaching sunset of the CEO’s effective controlling voting stake, we are not persuaded that the proposed arrangement is the correct solution,” Glass Lewis said in a note.