- Shopify Inc SHOP changed its compensation practices to let employees decide what their payments will be in cash or stock as the sector has struggled with volatility, Bloomberg reports.
- Shopify allows employees to choose a mix of cash, restricted stock units, and stock options, with the ability to withdraw stocks instantly.
- Previously, management determined the mix of cash and stock employees would receive. Shopify has equity locked up for the first year of employment.
- Shopify emphasized that the move would give employees flexibility, who could, for example, choose to receive more money if they were saving for a house.
- Employees receive a 5% bonus if they allocate more money to equity than is required under the minimum ‘guard rails’.
- Formerly Shopify cut common plans 1,000 workers, or 10% of its global workforce, marking a retreat from its pandemic bet.
- Founder and CEO Tobi Lütke justified the layoffs with the resumption of old shopping habits and the withdrawal of online orders, which would have fueled the company’s recent growth.
- Shopify, which helps businesses set up e-commerce websites, saw its revenue growth slow in FY22.
- Price promotion: SHOP shares traded 6.19% lower at $31.76 on the last check Friday.
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