“The ongoing industry-wide realities in which we had to operate were not uncomplicated: compensation tied to market value; geographic salary disparities for a global workforce; and the few making choices for the many,” the company said in a blog post.
Shopify stressed that the shift will provide flexibility to employees who may opt to receive more cash when saving for a house, for example. That said, staff will receive a 5% bonus if they allocate more money to equity than is required under minimum “guardrails.” These vary from country to country, based on legal requirements, the company said.
The move is the latest in a string of changes Shopify has enacted over the past year. In July, it cut about 10% of its workforce, with Chief Executive Officer Tobi Lutke acknowledging he overestimated how much e-commerce would grow after the pandemic compared to physical retail.
In June, the company completed a 10-for-1 split of its common stock in a bid to spark interest among retail investors. But it appears to have had little impact.
Shopify shares fell 4.5% to C$42.77 at 9:41 a.m. in Toronto.
