Advisory firms oppose Shopify proposal to lock in voting stake for CEO Tobias Lutke

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Shareholders will be asked to approve a new arrangement that would allow Mr. Lutke, his family and affiliates to hold 40 per cent of the total voting power at the company

Leading shareholder advisory firms are opposing a Shopify Inc. proposal that would give Chief Executive Officer Tobias Lutke a “founder share,” which would lock in a major voting stake in the company.

Proxy advisory firm Institutional Shareholder Services Inc. late Tuesday said it recommends against the proposal. Glass, Lewis & Co. last week told clients it is “not persuaded that the proposed arrangement is the correct solution.”

 

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