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The co-founder of Wise PLC on Monday criticised the payment firm’s ‘inappropriate and unfair’ governance changes within plans to move its primary stock market listing from the UK to the US. Taavet Hinrikus wrote a letter to shareholders through his investment vehicle Skaala Investments OU, which owns 5.1% of the shares in Wise. The letter criticised the company’s proposals to move its primary listing to a stock exchange in the US and also to extend the voting rights of so-called Class B shareholders by another decade. A dual-class shareholding structure means the Class B shareholders have more than 90% of the voting rights. Such structures have faced criticism that they give minority stakeholders an oversized voting power over a company’s proposals. Skaala Investments wrote in the letter that the proposal ‘deprives owners of a fair choice and requires them to accept an unnecessary compromise, forcing an ’all-or-nothing’ vote rather than allowing shareholders to approve a dual-listing but vote down a resolution granting Class B shares extended voting powers’. ‘This prejudices Class A shareholders by diluting their voting power, benefiting those few with significant Class B shareholdings primarily the [chief executive], Kristo Kaarmann.’ The investment group said it was ‘entirely inappropriate and unfair to wrap these distinct issues together’. It urged shareholders to vote against the proposals unless the issues can be separated into two separate resolutions. Wise’s board responded to the letter to say it ‘takes Hinrikus’s views seriously’ but that it disagreed with his view on the proposal. The company said its proposals would bring ‘greater visibility in the US, the biggest market opportunity for our products today’, while a dual-class share structure was ‘essential to ensuring our continued successful performance and safeguarding our focus on executing our strategy’. The London-based money transfer firm unveiled plans last month to switch its primary listing from the London Stock Exchange to the US in a bid to tap into a wider pool of banking customers and investors. Wise, which was launched in 2011 under original name TransferWise, said it was not turning its back on the UK, with it planning to keep a secondary listing in London and continue hiring and investing in its UK workforce. It is set to hold a shareholder meeting later this month for investors to vote on the proposal. Wise shares were down 1.5% to 1,023.00 pence on Monday in London. By Anna Wise, PA Business Reporter source: PA Copyright 2025 Alliance News Ltd. All Rights Reserved.
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