Executive pay packages aren’t just a problem at Tesla (NASDAQ:TSLA) these days. Now, they’re a problem at e-commerce giant Shopify (TSE:SHOP) (NYSE:SHOP), where shareholders just approved a new set of packages for the executive staff despite some significant objections from proxy advisors. The move left Shopify shares up fractionally in Tuesday morning’s trading session.
The pay packages in question came over the objections of both Glass Lewis and Institutional Shareholder Services (ISS), who both advised shareholders to vote against the plan as presented. With the plan poised to go through, leaders of the company will receive millions of dollars in salaries and various awards.
ISS, for its part, objected in general, calling the plan full of “…significant problematic pay practices.” That includes a large stock option grant for CEO Tobi Lutke and a $75 million package for Kaz Nejatian, Shopify’s Chief Operating Officer.
Improving Its Lineup
But maybe there’s a reason they’re making this kind of money. Shopify recently gave users a new reason to sign up for Shopify Plus, even with the $2,300 per month minimum price tag. It acquired Checkout Blocks, a tool that allows for rapid and easy customization of online checkout platforms that can be done without having to know how to code.
With Checkout Blocks, users can include information banners, AI-driven product recommendations, various custom fields, and more. Shopify first started working with Checkout Blocks back in September 2022, but now, it’s there full-time and offering new value to Shopify users.
Is Shopify a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SHOP stock based on 16 Buys and 13 Holds assigned in the past three months, as indicated by the graphic below. After a 0.96% increase in its share price over the past year, the average SHOP price target of C$105.22 per share implies 29.11% upside potential.
