The initiative, in place since last year, gives staff a “total rewards wallet” that allows them to choose between cash and stock options for their compensation and was implemented in the wake of Shopify cutting 1,000 staff and other tech companies following suit.
"We went through an extensive benchmarking exercise to help us make sure that within Shopify, the right people are getting paid the right amount," Hoffmeister said, on a Wednesday call with analysts.
The exercise, he added, resulted in higher compensation expenses starting in September of 2022, primarily in the research and development departments. Thus, he believes the company's year-over-year comparability will be affected during the first three quarters of 2023.
Shopify's emphasis on personnel comes as the company has been experiencing turnover among its high-profile staff members.
In January, it announced chief technology officer
Lütke previously stepped into takeover chief product officer
The company also parted ways with several key staff including chief financial officer
As some workers left, Shopify has been grappling with soaring interest rates and stubbornly high inflation and trying to pull itself out of stock slump triggered by consumers shifting back to pre-pandemic shopping habits.
The Shopify executives are confident they can restore the long-term tech darling to its former glory because they say the company has been profitable for five out of the seven years since its initial public offering.
They also boast of one of Shopify's best qualities is its ability to navigate through different macroeconomic environments.
"Pre-COVID, you saw us operating with a particular efficiency, but also a particular eye on growth. During COVID, when things shut down, we went to work to help merchants move online,"
"We also simultaneously during COVID went to work on building the greatest point-of-sale product because we knew at some point post-COVID stores are going to reopen and once stores did reopen, we went hard in replacing all of those legacy systems with ours, so I think we've always operated well in any environment."
But operating well in this environment will also mean facing off against constant foe
"When it comes to Buy with Prime, we think any company that's going to make their infrastructure available to merchants to sell more is a great thing. We like it," said Finkelstein.
He added that Shopify is still in discussions with
Finkelstein's remarks come as Shopify recorded a loss of
The net loss in what was its fourth quarter compared with a net loss of
The result for the period ended
Analysts on average had expected the company to lose
Shopify, which reports its financial figures in
Its operating loss was
Seeing the operating loss change, analyst
This report by The Canadian Press was first published
Companies in this story: (TSX:SHOP)
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