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Tobias Lütke, founder and CEO of Shopify. Photo by Bloomberg

Shopify Doubles Down on ‘Pay Isn’t Everything’ Approach

By and  |  March 3, 2022 6:02 AM PST
Photo: Tobias Lütke, founder and CEO of Shopify. Photo by Bloomberg

In the mind of Shopify CEO Tobias Lütke, working at the e-commerce firm shouldn’t be about making lots of money. Lately, that’s been a reality for at least some employees.

Shopify has historically offered low base salaries, in line with Canadian nontech firms, an approach that has been offset by stock awards whose value has soared as the company’s stock rocketed. But a plunge in the stock price lately has slashed the value of recent stock grants, unsettling employees. While some companies including Amazon have dealt with similar issues by raising pay, Shopify management hasn’t made any such promises.

And that may be increasing staff defections. Five recently departed employees pointed to pay as a factor driving them and others to jump ship. “The exits are a bit of a flood right now,” one said.

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