Wise Co-Founder Criticizes "Inappropriate and Unfair" Governance Changes

Wise co-founder Taavet Hinrikus criticized the payment firm's "inappropriate and unfair" governance changes within plans to move its primary stock market listing from the UK to the US. Hinrikus wrote a letter to shareholders, criticizing the dual-class shareholding structure that gives minority stakeholders oversized voting power. He urged shareholders to vote against the proposals unless the issues can be separated into two separate resolutions.

The co-founder of Wise, Taavet Hinrikus, has publicly criticized the fintech firm's proposed governance changes, particularly the dual-class shareholding structure, within the context of plans to move its primary stock market listing from the UK to the US. Hinrikus, who owns 5.1% of the company's shares through his investment vehicle Skaala Investments OÜ, expressed concern over the "inappropriate and unfair" governance changes in a letter to shareholders.

Hinrikus' letter challenged the company's proposals to move its primary listing to a US stock exchange and to extend the voting rights of so-called Class B shareholders by another decade. The dual-class shareholding structure currently grants Class B shareholders more than 90% of the voting rights, a structure that has faced criticism for giving minority stakeholders oversized voting power [1].

Skaala Investments argued that the proposals deprive shareholders of a fair choice, requiring them to accept an "all-or-nothing" vote. The letter urged shareholders to vote against the proposals unless the issues can be separated into two distinct resolutions. Hinrikus specifically highlighted the potential prejudice to Class A shareholders, whose voting power would be diluted, benefiting those with significant Class B shareholdings, primarily the CEO, Kristo Kaarmann [1].

Wise's board responded to the letter, stating it takes Hinrikus' views seriously but disagrees with his stance on the proposals. The company maintains that its plans to move the primary listing to the US and extend the dual-class share structure would bring "greater visibility in the US, the biggest market opportunity for our products today," and that the dual-class structure is essential for the company's continued success and strategic focus [1].

The British money transfer firm, originally known as TransferWise, plans 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 [1, 4].

References:
[1] https://uk.finance.yahoo.com/news/wise-co-founder-condemns-inappropriate-095752704.html
[2] https://finance.yahoo.com/news/wise-co-founder-condemns-inappropriate-095752704.html
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TF0AV:0-uk-stocks-uk-factors-to-watch-on-july-18/
[4] https://ng.investing.com/news/company-news/wise-shareholders-face-vote-on-dual-listing-and-share-structure-extension-93CH-2015517