- Shopify Inc (NYSE: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.
Oppenheimer Downgrades CinCor Pharma to Perform
Oppenheimer analyst Jay Olson downgrades CinCor Pharma (NASDAQ:CINC) from Outperform to Perform.
