Shares of Shopify (NYSE:SHOP) gained over 4% Tuesday after preliminary data showed that shareholders approved the company's 10-for-1 stock split and the special Founder share proposal.
For the stock split, shareholders of record as of the close of business on June 22, 2022 will receive on June 28, 2022 nine additional Class A subordinate voting shares or Class B multiple voting shares, as applicable, for every one share held.
The founder share would preserve CEO and founder Tobi Lutke's 40% voting power. It will sunset if Tobi no longer serves the Company in certain capacities or Tobi, his immediate family and his affiliates no longer hold a number of Class A and Class B shares equal to at least 30% of the Class B shares currently held by Tobi and his affiliates.
Shares of Shopify are down 73% year-to-date but remain up 2109% from the 2015 IPO price of $17.