Proxy research firm ISS opposes Shopify issuance of founder share to CEO

Proxy research firm Institutional Shareholder Services is recommending against a proposed by Shopify Inc. SHOP, +1.19% to issue one founder share to its CEO Tobi Lütke, Barron’s reported on Wednesday. Combined with other securities at the internet commerce company, the founder share would help Lütke hold 40% of the total voting power of all of the company’s outstanding shares. In an ISS report seen by Barron’s, the firm urged shareholders to vote against the proposal because it “does not meet the exceptional set of circumstances under which such multi-class share structure might be considered appropriate in the Canadian market.” ISS follows another recommendation against the plan by Glass Lewis & Co. earlier this week. Shares of Shopify rose 2.5% on Wednesday. The stock is down 75.8% so far in 2022 compared to a 27.3% drop by the Nasdaq COMP, +0.77%.