Shopify has fundamentally changed the way our employees get paid.
This summer, we launched Flex Comp - the first-ever compensation model that enables our employees to choose how they get paid. We had an opt-in rate of 91% among eligible employees.
Shopify was built by finding broken systems and building better solutions. At Shopify, we believe that you should be able to choose how you are compensated so that your pay works for you and your individual priorities.
The Flex Comp system delivers 3 benefits:
1️⃣ Clarity - Previously, it was hard to understand exactly how much you earned with a pay stub in one place, equity grants in another, and the added complexity of vesting schedules, etc. With Flex Comp, everything for an individual's compensation is in one place, a one-stop shop. Kind of like… Shopify.
2️⃣ Agency - Before, the company dictated your cash/equity breakdown. Now, employees can choose their compensation mix of cash, RSUs, and stock options. AND because we know life changes, employees can update their choices a few times a year. PLUS, we are thanking employees who support our mission when they pick RSUs or options by giving them a 5% bonus on additional equity they choose to take.
3️⃣ Impact - When employees make a positive impact in their roles, they will be rewarded – tying compensation to our mission, not the stock market. There are no speed limits to compensation growth.
Equity and cash compensation systems are table stakes in the industry. What’s revolutionary about Shopify’s Flex Comp is that employees have unparalleled choice to decide how they get paid.
I have no doubt that many other companies will replicate this compensation model.
More on our Flex Comp system👇
https://lnkd.in/e7Mf3HPP