Wise co-founder seeks talks with proxy advisers in US listing row

A co-founder of Wise wants the world's most influential corporate voting advisory firms to change their judgements on plans that would cement control of the money-transfer service in the hands of a small band of investors for another decade.

Sky News has learnt that Taavet Hinrikus, who alongside current chief executive Kristo Kaarmann launched the company in 2011, is to press Glass Lewis and Institutional Shareholder Services (ISS) - whose recommendations carry significant sway among institutional investors - to advise Wise's shareholders to oppose plans to extend its dual-class shares until 2036. The row has arisen amid plans for Wise to shift its primary listing to New York, where dual-class ownership structures are far more common.

Money latest: Why boxing fans are demanding refunds The structure was put in place in 2021, when Wise floated in London with a pledge that it would revert to a single class of shares five years after its stock market debut. Mr Hinrikus's ownership vehicle - Skaala Investments - holds just over 5.1% of Wise's shares, a stake worth roughly £450m at the current stock price.

As a result of its ownership of Class B shares, Skaala also holds roughly 11% of Wise's voting rights. Speaking exclusively to Sky News, Mr Hinrikus said he was "disappointed that neither Glass Lewis nor ISS have flagged this important governance issue".

"We are keen to discuss this with them and for them to revise their reports ahead of the vote." Mr Hinrikus has been angered by Wise's refusal to separate the questions of the US listing and the dual-class voting structure into distinct resolutions at its forthcoming general meeting to approve the move. In a statement issued more widely on Monday, Skaala said "this material governance change was not clearly disclosed to Wise's share owners".

Read more from Sky News:Key recommendations from landmark report into 'broken' water industryBT in talks to dial up successor to veteran finance chief It was unclear which other shareholders in Wise were unhappy at the company's approach. Wise said: "The dual-class share structure is essential to ensuring our continued successful performance.".