Gamestop Execs Take Pay Cut as Stores Remain Closed
Other Gamestop employees may also be facing pay cuts in the near future.
Of all the sectors of the gaming industry harmed by the Coronavirus pandemic, retailers are among the most affected. We recently reported on Gamestop closing over 300 stores, including all locations in the state of Massachusetts. However, as time goes on and the virus shows no signs of letting up, additional actions are being taken by the gaming retail giant, including massive pay cuts for its executives.
Announced through a press release, Gamestop’s CEO, George Sherman, will be facing a temporary loss of 50 percent of his base salary. Jim Bell, the company’s chief financial officer, along with other members of Gamestop’s executive leadership team, will be facing a cut of 30 percent. Members of the company’s Board of Directors are also facing a reduced cash compensation of 50 percent.
With massive pay cuts at the top, some will naturally trickle down. Beginning April 26, “certain employees” will receive reduced pay. The total pay lost will be somewhere between 10 and 30 percent. Corporate staff will also have the option to be temporarily furloughed or take part in a reduced workweek or pay program.
But what about your local Gamestop? Well, you shouldn’t have to worry, but don’t expect to buy anything in bulk any time soon. Inventory is being reduced, although a focus is being put on “hardware, software and accessories products.” If you’re in South Carolina or Georgia, the company is beginning the process of re-opening stores, with other states following in the coming weeks. And if you’re one of our many Italian, German or Austrian readers (ciao, guten tag), you can also expect stores to begin opening up soon.
According to the release, Sherman believes that the company will be able to come out of the pandemic in a stable state, saying the following:
“The situation remains very fluid and a great deal of uncertainty remains, however, we entered into this time with a strong balance sheet and believe that we have sufficient cash and liquidity for the foreseeable future and will continue to take all of the necessary steps to ensure GameStop remains a strong and vibrant company at the end of this crisis.”