GameStop’s fourth CEO in just three years has forfeited his $98 million worth of shares after failing to meet performance targets. George Sherman’s 587,000 shares were given up alongside 119,000 shares from Chris Homeister, GameStop’s chief merchandising officer, who also failed to meet targets.
The filing which reveals the news does not go into any detail as to what performance targets were missed, just that it was a failure as part of a 2019 agreement, when Sherman was granted the shares in the company.
This news comes amid rumors that the company is looking to oust the CEO. That report comes from sources speaking to Reuters earlier this week, and claims that Sherman is getting the boot so GameStop can move away from physical storefronts and embrace the digital marketplace, as brick and mortar stores continue to die out in favor of internet shopping.
If the reports are accurate, it wouldn’t be the only executive shake up of 2021. Reggie Fils-Aime ended his post-Nintendo career at the company a few weeks ago, after less than two years with the retailer. This news was also dropped unceremoniously in a SEC filing.
Overall, it’s sure been a year for the notorious chain of gaming outlets. Despite making international headlines after Reddit users invested millions in the company - seeing stock prices soar - nothing seems to be able to reverse its dire fate, which has only been exacerbated by the coronavirus related lockdowns internationally.
However, this latest “out with the old” move may be part of a strategy to embrace the internet culture GameStop found itself enraptured in earlier in the year. This would explain why the company is on a hiring-spree for people experienced with blockchain, crypto, and NFTs. While executives will hope that keeping up with internet fads is a way out of he numerous financial issues, this could just be part of the eccentric final chapter in the long, notorious history of GameStop.
Source: SEC, Benzinga
