Automatic Securities Disposition Plan Adopted by Shopify Chief Executive Officer
Shopify (NYSE, TSX: SHOP) announced that CEO Tobias Lütke has adopted an automatic securities disposition plan (ASDP) for the sale of Class A Subordinate Voting Shares. The plan, set to commence on or after September 17, 2024, allows for the sale of up to 2,564,964 Class A Shares and will terminate by December 31, 2025. The Ontario Securities Commission has exempted Mr. Lütke from prospectus requirements for these sales. All shares in the ASDP are from vested options and restricted share units granted as CEO compensation. The plan does not involve conversion of any multiple voting shares owned by Mr. Lütke.
Shopify (NYSE, TSX: SHOP) ha annunciato che il CEO Tobias Lütke ha adottato un piano di disposizione automatica dei titoli (ASDP) per la vendita delle Azioni di Voto Sottoposte di Classe A. Il piano, che inizierà il 17 settembre 2024 o dopo, consente la vendita di fino a 2.564.964 Azioni di Classe A e terminerà entro il 31 dicembre 2025. La Commissione per i Valori Mobiliari dell'Ontario ha esentato il sig. Lütke dai requisiti di prospetto per queste vendite. Tutte le azioni nel piano ASDP derivano da opzioni maturate e unità di azioni ristrette concesse come compenso per il CEO. Il piano non prevede la conversione di alcuna azione a voto multiplo posseduta dal sig. Lütke.
Shopify (NYSE, TSX: SHOP) anunció que el CEO Tobias Lütke ha adoptado un plan de disposición automática de valores (ASDP) para la venta de Acciones de Voto Subordinado de Clase A. El plan, que comenzará el 17 de septiembre de 2024 o después, permite la venta de hasta 2,564,964 Acciones de Clase A y finalizará el 31 de diciembre de 2025. La Comisión de Valores de Ontario ha eximido al Sr. Lütke de los requisitos de prospecto para estas ventas. Todas las acciones en el ASDP provienen de opciones devengadas y unidades de acciones restringidas otorgadas como compensación al CEO. El plan no implica la conversión de acciones de voto múltiple poseídas por el Sr. Lütke.
쇼피파이(NYSE, TSX: SHOP)가 CEO 토비아스 뤼트케가 클래스 A 비율 주식 판매를 위해 자동 유가증권 처분 계획(ASDP)을 채택했다고 발표했습니다. 이 계획은 2024년 9월 17일 또는 그 이후부터 시작되며, 최대 2,564,964 클래스 A 주식의 판매를 허용하며 2025년 12월 31일에 종료됩니다. 온타리오 증권 위원회는 뤼트케 씨가 이 판매에 대한 설명서 요건을 면제했습니다. ASDP의 모든 주식은 CEO 보상으로 지급된 탈락된 옵션 및 제한 주식 단위에서 기인합니다. 이 계획은 뤼트케 씨가 소유한 어떤 다중 투표 주식의 전환도 포함하지 않습니다.
Shopify (NYSE, TSX: SHOP) a annoncé que le PDG Tobias Lütke a adopté un plan de disposition automatique de titres (ASDP) pour la vente d'Actions de Vote Subordonnées de Classe A. Le plan, qui commencera le 17 septembre 2024 ou après, permet la vente de jusqu'à 2.564.964 Actions de Classe A et se terminera le 31 décembre 2025. La Commission des valeurs mobilières de l'Ontario a exempté M. Lütke des exigences de prospectus pour ces ventes. Toutes les actions dans le plan ASDP proviennent de options acquises et d'unités d'actions restreintes accordées en tant que rémunération pour le PDG. Le plan ne concerne pas la conversion de quelconques actions à vote multiple détenues par M. Lütke.
Shopify (NYSE, TSX: SHOP) gab bekannt, dass CEO Tobias Lütke einen automatischen Wertpapierveräußrungsplan (ASDP) für den Verkauf von Klassen A nachrangigen Stammaktien eingeführt hat. Der Plan, der am 17. September 2024 oder danach beginnen soll, erlaubt den Verkauf von bis zu 2.564.964 Aktien der Klasse A und endet am 31. Dezember 2025. Die Ontario Securities Commission hat Herrn Lütke von den Prospektanforderungen für diese Verkäufe befreit. Alle Aktien im ASDP stammen aus verfallenen Optionen und eingeschränkten Aktieneinheiten, die als CEO-Vergütung gewährt wurden. Der Plan umfasst keine Umwandlung von Mehrfachstimmrechten, die Herrn Lütke gehören.
- CEO's ASDP demonstrates confidence in long-term company value
- Transparent disclosure of insider trading plans
- Regulatory approval obtained from Ontario Securities Commission
- Potential dilution of shareholder value due to sale of 2,564,964 Class A Shares
- Possible market perception of reduced CEO commitment
Insights
The adoption of an Automatic Securities Disposition Plan (ASDP) by Shopify's CEO is a neutral event for investors. While it allows for the sale of up to 2,564,964 Class A Shares, it's important to note that these are from vested options and RSUs, not direct stock sales. This structured approach to selling shares is common among executives and doesn't necessarily signal a lack of confidence in the company. The plan's duration until December 31, 2025 provides a long-term, orderly approach to share disposition. However, investors should monitor the actual execution of sales, as large volumes could potentially impact stock price in the short term. Overall, this ASDP is a standard practice for executive compensation management and doesn't inherently reflect on Shopify's future performance or valuation.
The ASDP's implementation demonstrates strong corporate governance and compliance with securities regulations. Key points include:
- Exemption from prospectus requirements granted by the Ontario Securities Commission
- Alignment with Shopify's internal policies
- Precautions against insider trading, as trades are pre-arranged when the CEO lacks material non-public information
This structure protects both the company and the CEO from potential legal issues related to insider trading. The transparency in disclosing the plan's details, including the maximum number of shares and termination date, further enhances Shopify's commitment to regulatory compliance and shareholder communication. This legal framework provides a safeguard for investors, ensuring that executive stock transactions are conducted in a controlled, pre-planned manner.
Internet, Everywhere--(Newsfile Corp. - September 6, 2024) - Shopify Inc. (NYSE, TSX: SHOP), announced today that Tobias Lütke, Shopify's Chief Executive Officer, has adopted an automatic securities disposition plan ("ASDP"), in accordance with securities laws and Shopify's internal policies, with sales of Class A Subordinate Voting Shares ("Class A Shares") under the plan eligible to commence on or after September 17, 2024. The Ontario Securities Commission issued a decision exempting Mr. Lütke from the prospectus requirements under Canadian securities legislation with respect to sales of Class A Shares under the ASDP. This announcement is made pursuant to the requirements of that decision. Mr. Lütke entered into automatic securities disposition plans under a similar exemption annually from 2017 to 2021.
The ASDP permits trades to be made in accordance with pre-arranged instructions given when Mr. Lütke was not in possession of material non-public information regarding Shopify. The ASDP provides for the sale of an aggregate of up to 2,564,964 Class A Shares and will terminate no later than December 31, 2025. All the Class A Shares that could potentially be sold under the ASDP are pursuant to vested options and restricted share units granted to Mr. Lütke as compensation for his services as Chief Executive Officer. The ASDP does not provide for the conversion of any multiple voting shares of the Company owned by Mr. Lütke.
About Shopify
Shopify is the leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for speed, customization, reliability, and security, while delivering a better shopping experience for consumers online, in store and everywhere in between. Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as Mattel, Gymshark, Heinz, FTD, Netflix, Kylie Cosmetics, SKIMS, Supreme, and many more. For more information, visit www.shopify.com.
CONTACT:
INVESTORS:
Carrie Gillard
Director, Investor Relations
IR@shopify.com
MEDIA:
Alex Lyons
Senior Lead, External Communications
press@shopify.com
SOURCE: Shopify
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222426
FAQ
When will Shopify CEO Tobias Lütke's automatic securities disposition plan (ASDP) commence?
How many Class A Shares can be sold under Shopify CEO's new ASDP?
What is the termination date for Shopify CEO's current ASDP?
Does Shopify CEO's ASDP involve conversion of multiple voting shares?
