Canadian e-commerce giant Shopify Inc (TSX:SHOP)(NYSE:SHOP) on Monday announced a 10-to-1 split of the company’s Class A and Class B shares. Shopify is proposing changes to its governance structure to preserve the voting power of its founder and CEO Tobi Lütke.

Mr. Luke to Own 40% of Voting Rights

Under the company’s new plan, Shopify will issue Mr. Lütke a founder’s share to which will be attached a varying number of votes. Combining this share with his other assets, Mr. Lütke will own 40% of the total voting rights of all outstanding shares of the company.

The founder’s share will not be transferable and will terminate when Mr. Lütke ceases to be an executive officer, member of the board of directors or consultant whose principal employment is with the company, or when Mr. Lütke, his immediate family and affiliates will no longer hold a number of Class A and Class B shares equal to at least 30% of the Class B shares they currently hold.

10-for-1 Stock Split

The plan requires approval of a two-thirds majority vote cast by Shopify shareholders voting together as one class, and at least a majority of the votes cast by shareholders excluding Mr. Lütke and its associates and affiliates.

The company is also proposing a ten-for-one split of its Class A and Class B shares. To take place, the stock split will require the approval of a two-thirds majority vote of Class A and Class B shareholders, voting together as one class.

Shopify stock jumped 4% on Monday, but the tech company shares are still down 50% year-to-date.

Shopify is enabling businesses to build online stores but is struggling with the faltering pandemic-induced e-commerce boom while spending heavily on a network of fulfillment centers.

Employees Will Have the Choice Between Stocks and Cash

Shopify announced last week that it will change its compensation package to give employees the option to choose between cash and stock, seeking to attract and retain talent in a highly competitive job market.

The change, which will start in July, was introduced by Tobi Lütke and will affect all roles and geographies.