By GameStop Corp.
GME,
-3.07%
plans to reward thousands of employees with stock and pay raises, returning focus to its bricks-and-mortar business as the company looks to become profitable under new leadership.
The videogame retailer, which had pivoted last year to growing online sales, is trying to do more to motivate and retain the employees at its stores, according to a Wednesday memo to employees reviewed by The Wall Street Journal.
The company plans to award stock to all of its U.S. store leaders and give raises to some senior store staff. Store leaders will receive up to $21,000 in stock, which will vest over three annual installments.
The financial awards will start next month, Chief Executive Matt Furlong said in the memo. Furlong didn’t specify what amount of time employees would need to have worked at the company to qualify for the raises.
The company is investing between $45 million to $50 million in the new employee-compensation initiative, according to a person familiar with the matter. It applies only to staff at the company’s more than 3,000 locations in the U.S., this person said.
An expanded version of this report appears on WSJ.com.
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