Wise's plan to move its primary listing to the US is drawing fire from co-founder Taavet Hinrikus and proxy advisory firms because the vote on the move will also ask shareholders to greenlight an extension of the money transfer company's dual-class share structure.
When it floated in London in 2021, Wise put in place the duel-class share structure that effectively ensures that a small number of investors control the company.
That structure was set to end in 2026 but the plan to move the listing to New York includes a resolution to extend the duel-class share until 2036.
Earlier this week, Hinrikus - who owns over five per cent of Wise via his Skaala Investments OÜ vehicle - told Sky News that he was "disappointed" that proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) did not advise shareholders to oppose the duel-class plans.
"We are keen to discuss this with them and for them to revise their reports ahead of the vote," said Hinrikus.
Since then, Glass Lewis has issued a report stating "we are concerned by the extension of the sunset provision". According to Bloomberg, the report continues: "Glass Lewis believes multi-class share structures with unequal voting rights are typically not in the best interests of common shareholders."
Meanwhile, another proxy advisory firm, PIRC, is also lobbying shareholders to vote against the proposal because of the inclusion of the dual-class share resolution, says Bloomberg.
In response, Wise has issued a statement saying: "The dual-class structure is an integral element of Wise’s listing proposal which shareholders are being asked to vote on through a scheme of arrangement, which inherently involves a vote on a single proposal.
"Wise values shareholder democracy and governance principles and has put forward a scheme that requires a super majority of 75% shareholder support, for each class of shares, on the basis of ‘one share, one vote’."