The CEO of GameStop George Sherman (pictured) and CFO Jim Bell have taken pay cuts for the duration of the COVID-19 coronavirus pandemic.
Announced on the company's website, the execs will be taking a 50 and 30 per cent pay cut to their base salaries, respectively, while GameStop's board will be receiving just 50 per cent of its compensation.
This comes a week after the duo bought more shares in the firm on April 17th. Sherman bought 25,000 shares while Bell picked up 4,500. Depending on how GameStop's stock performs, this could certainly soften the loss of taking a pay cut now.
"We continue to proactively manage our business with a goal to increase financial flexibility and preserve cash flow in the current environment," Sherman wrote.
"Today, we announced salary reductions for our senior management team and board of directors, as well as wage rate reductions for some other corporate and field support staff. In addition, we have offered certain corporate and other support team members the option to work under either half-time/half-pay structure or a temporary furlough program. We believe our aggressive focus on expense, inventory and capital expenditure reductions will help preserve our financial health as we work to ensure readiness and ramp up operations as soon as conditions allow.
“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.”