Mercari introduces RSUs for employee retention

07 Jan 2019

Mercari Inc., the operator of flea market app Mercari, has introduced an attractive compensation system, known as restricted stock units (RSUs), to entice employees to stay on longer.

With the new incentive system, Mercari employees will be granted shares in the company, through a vesting plan, linked to their tenure. The stocks will be turned into income/dividends upon vesting.

The compensation system was introduced in Japan where employee retention is a big challenge for employers amid labor shortages.

Founded in 2013, Tokyo-based Mercari has more than 1,000 employees in Japan and more than 200 workers on its payroll in the U.S.  It entered the U.S. market in 2014.

The company decided to wind up its U.K operations from March. It offers absolutely free services in the European market unlike in Japan and the U.S. Its London office is home to 50 employees, according to its LinkedIn profile. Mercari expects to conclude its U.K. shutdown by June 2020.

The peer-to-peer marketplace made an outstanding debut on the Tokyo Stock Exchange with a $1.2 billion U.S. initial public offering in June last year. It has been downloaded around 70 million times in Japan where its main competitors are Jmty.jpYahoo Auctions, and Rakuma.

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Tariq Ahmed Saeedi

Tariq Ahmed Saeedi writes stories on sharing economies in Asia – particularly Japan, Taiwan, Vietnam, Korea, Pakistan, Bangladesh and Iran. He joined the AIM Group in January 2016. Tariq is also a spotter, monitoring global marketplace industry’s updates. He carries more than 15 years of writing experience. Tariq frequently contributes economic/tech news and analysis to a daily The News International and a magazine. He has also written features and interview articles for various other publications and some of his write-ups have been cited for references in reports by the World Bank and archived in Florida Institute of Technology’s library. Tariq has also narrated corporate website content for Audi importer in Pakistan and others. He started his career from a television’s current affairs department in 2003 and later joined the country’s premier news agency Pakistan Press International.