Shopify Eases On Employee Cash-Stock Mix

Shopify Inc SHOP changed its compensation practices to let staff decide how much their payments will be cash versus equity as the sector struggled with volatility, Bloomberg reports.
Shopify will allow employees to choose a mix of cash, restricted stock units, and stock options, with the ability to withdraw equity immediately.
Previously the management determined the mix of cash and stock that staff would receive. Shopify locked equity for the first year of employment.
Shopify stressed that the shift would provide flexibility to employees who may opt to receive more cash when saving for a house, for example.
The staff will receive a 5% bonus if they allocate more money to equity than is required under minimum “guardrails.”
Earlier Shopify shared plans to slash 1,000 workers, or 10% of its global workforce, marking a retreat from its pandemic bet.
Founder and CEO Tobi Lütke justified the layoffs citing the resumption of old shopping habits and pull back on the online orders that fueled the company’s recent growth.
Shopify, which helps businesses set up e-commerce websites, saw a slowdown in FY22 revenue growth.
Price Action: SHOP shares traded lower by 6.19% at $31.76 on the last check Friday.