Canadian multinational e-commerce company Shopify, in a bid to retain talents, has implemented a new compensation system that allows employees the flexibility to choose between cash and stock, following a highly competitive market.
With this new compensation plan, employees across all departments in the company will receive a raise, along with the ability to determine how much of their total pay comes in cash and how much is in stock.
Stock-heavy compensation and an emphasis on the priceless experience of working with revered tech talent like the company’s founder and CEO, Tobi Lütke, are typically part of Shopify’s compensation package.
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The implementation of this compensation plan, came after the company received backlash from its employees, where some disclosed that they felt uncomfortable about their compensation packages as Shopify’s stock price fell more than 65%.
The company revealed that as many as 91% of the eligible employees have already enrolled in the new system.
Chief Human Resources Officer, Tia Silas said in an interview said;
“An employee saving to buy a house can choose to take home more in cash. Someone planning for their children’s future can opt for more RSUs or options.
“The share vesting will begin immediately as one-year cliffs on equity have been removed”. He added.
The company, which offers tools and payment systems for merchants to set up their online stores, last week named investment banker Jeff Hoffmeister as its financial head to help it navigate a challenging environment with several headwinds including high inflation and lower demand.
Shopify is one of the many tech companies that fought to retain workers in a hot market after a fall in its stock price. The company found itself on the losing end of the talent wars. But of course, they still need talent and many professionals will be looking for Shopify Interview Questions, to deepen their capacities to be part of that technology company.
The stock price crash caused some frustration among employees, some of which resigned, particularly those who joined the company in 2021, when its stock price was much higher.
Also, tech companies with struggling stock prices also had to contend with the Big Resignations. It was reported that more than 47 million Americans left their jobs in 2021, with many seeking higher pay and better working conditions.
The Canadian company had stated in the past that it would cut about a 10th of its workforce and review its operations to slash spending given a challenging environment, with cost-conscious consumers cutting back on online purchases.
But those benefits may no longer be cut as its new plan allows employees the flexibility to choose between cash or stock.