Wise Faces Backlash Over US Relisting and Dual-Class Share Extension

July 24, 2025 • FinTech News

Wise’s plan to shift its primary listing to the United States is under intense scrutiny from co-founder Taavet Hinrikus and multiple proxy advisory firms. At the center of the controversy is a proposal that combines the move to New York with an extension of the company’s dual-class share structure—an arrangement that ensures control remains concentrated among a small group of shareholders.

When Wise went public in London in 2021, it adopted this dual-class structure with a planned expiration in 2026. However, the current proposal would extend it by another decade, to 2036. This strategic shift has sparked criticism for limiting shareholder influence.

Hinrikus, who holds over 5% of Wise via Skaala Investments OÜ, expressed his disappointment that leading proxy advisers initially declined to oppose the plan. “We are keen to discuss this with them and for them to revise their reports ahead of the vote,” he told Sky News.

Since then, Glass Lewis issued a report voicing concern over the extension. It stated: “We are concerned by the extension of the sunset provision,” and added that unequal voting rights are “typically not in the best interests of common shareholders.” Bloomberg reports that another influential firm, PIRC, is also encouraging shareholders to vote against the plan due to the inclusion of the dual-class extension.

Wise responded by defending the structure, noting it is a core part of the relisting proposal. The firm emphasized that shareholder democracy remains central to the decision. “Wise values governance principles and has put forward a scheme that requires a 75% supermajority of each class of shares, based on the ‘one share, one vote’ principle,” the company stated.

The vote, expected to be pivotal, could significantly shape the company’s governance and investor sentiment as it attempts to reframe itself for the US market.