GameStop, a very coherent and logical company that sells physical video games but also fluffy toys, worthless NFTs and the promise of a get-rich-quick scheme, just announced an “improved compensation” scheme for the most senior employees of its bricks-and-mortar video game stores.
In a memo sent to employees earlier today—and shared by Axios’ Stephen Totilo—GameStop CEO Matt Furlong says that “while we continue evolving our ecommerce and digital asset offerings, our store fleet will remain critical to GameStop’s value proposition”, and as a result will be “rolling out an improved compensation model for Store Leaders”.
For Assistant Store Leaders and Senior Guest Advisers, that comes in the form of an undisclosed increase in their hourly pay. For Store Leaders it comes in the form of $21,000 worth of GameStop stock (that’s vested for three years) atop their regular pay, along with “the opportunity to earn additional compensation every quarter by hitting goals for performance-based equity grants”.
Here’s the memo in full:
Subject: Investing in GameStop’s store leaders
After spending a year strengthening our assortment, infrastructure and tech capabilities, we’re now focused on achieving profitability, launching proprietary products, leveraging our brand in new ways and investing in our stores. Our stores, in particular, are a differentiator that will help us maintain direct connectivity to customers and position us to have localized order fulfillment capabilities across more geographies. While we continue evolving our ecommerce and digital asset offerings, our store fleet will remain critical to GameStop’s value proposition.
With this said, I’m excited to announce we’re rolling out an improved compensation model for Store Leaders. The new model, which goes into effect next month, provides every Store Leader a time-based equity grant of $21,000 (vesting over three years) and the opportunity to earn additional compensation every quarter by hitting goals for performance-based equity grants. This is in addition to each Store Leader’s existing base pay.
Stock compensation associated with this new model is covered under GameStop’s existing equity plan, which was approved by stockholders. Leadership believes the model accomplishes the dual goal of increasing pay for every Store Leader and instilling a stronger ownership mentality across the org. In conjunction with this investment, we’re also increasing hourly pay for Assistant Store Leaders and Senior Guest Advisors.
In the coming weeks, additional details will be provided to Store Leaders and impacted associates. We look forward to continuing to attract and retain passionate, quality talent across our stores.
The memo comes two months after overworked and underpaid staff at a GameStop in the Gateway Mall in Lincoln, Nebraska, made international news after closing down the store and walking out, and one month after mass layoffs at the company’s HQ and Game Informer which were made in an attempt to help the company operate more “nimbly” as it pursues profitability through an “intense owner’s mentality.”
It also comes just a few months ahead of the busy holiday shopping season, which last year saw rank-and-file employees—who were not mentioned in the memo—pushed to their “breaking point”.
We’ve contacted GameStop for specifics on the raises for those affected, but if you’re an employee and would like to let us know yourselves you can do so here.