(Bloomberg) — Shopify Inc. investors were divided on the e-commerce company’s proposal to entrench Chief Executive Officer Tobi Lutke’s voting power.
Just under 54% voted in favor of creating a special “founder share” that guarantees Lutke at least 40% of the voting rights at the company under certain conditions, according to a statement Wednesday from Shopify.
To pass, the proposal required the support of a majority of the votes cast by shareholders, excluding the shares Lutke controls, at Tuesday’s virtual annual meeting.
Ahead of the meeting, shareholder advisory firms Glass Lewis & Co. and Institutional Shareholder Services Inc. recommended that investors reject the arrangement. The California Public Employees’ Retirement System had indicated it would vote against the proposal.
Shopify rose 2.4% to $389.98 as of 9:43 a.m. in New York.
Read more: Shopify’s Lutke Wins New Voting Rights on Shareholder Ballot
(updates with shares in last paragraph)
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