Shopify gives workers greater influence over compensation structure to attract talent

Shopify Inc announced on Friday that it has introduced a new compensation system that allows staff greater flexibility in restructuring their rewards between cash and equity as the e-commerce major seeks to attract and retain workers.

As many as 91% of eligible employees have already signed up for the new system, Flex Comp, the company said.

“An employee who is saving to buy a house may choose to take more money home. Someone who is planning for their children’s future may opt for more RSUs or options,” said Tia Silas, director of Shopify’s human resources, in an interview.

Acquisition of the shares will begin immediately as the one-year equity cliffs have been removed, Silas added.

The company, which provides payment tools and systems for merchants to build their online stores, named investment banker Jeff Hoffmeister as chief financial officer last week to help navigate a challenging environment with multiple headwinds, including high inflation and weaker demand.

The Canadian company has said in the past that it will cut around a tenth of its workforce and review its operations to cut spending in a tough environment as cost-conscious consumers cut back on online purchases.

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Shopify, whose shares were down about 4% in early trading amid a broader stock decline, said no further workforce reductions were expected.

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