GameStop Corp. Chief Executive Officer George Sherman forfeited about 587,000 restricted shares of the video-game retailer, or nearly $98 million at present costs, after failing to satisfy performance targets.
The stock was a part of an incentive bundle granted in April 2019, the month that Sherman took the CEO job on the Grapevine-based online game retailer. He nonetheless holds 1.77 million shares, based on a submitting, or $294.8 million, as of Wednesday’s shut.
Company representatives didn’t instantly reply to a request for remark.
GameStop has develop into a favourite of Reddit-reading day merchants this yr, sending the stock hovering nearly 800%. But the video-game shops chain has struggled to drag out of a stoop. GameStop missed each gross sales and revenue estimates in its most not too long ago reported quarter, regardless of getting a bump from new gaming consoles.
Activist investor Ryan Cohen, not too long ago named the corporate’s subsequent chairman, is spearheading a turnaround on the retailer. And that’s put Sherman on the recent seat.
The firm is looking for a brand new CEO, based on an individual conversant in the matter. As a part of that search, GameStop is contemplating a number of candidates, mentioned the particular person, who requested to not be recognized.
GameStop has been damage by the video-game trade’s shift to on-line distribution. Cohen, who beforehand ran the pet-supply web site Chewy, is seeking to rework GameStop into an e-commerce powerhouse. Already, the corporate has shaken up its administration ranks, including alumni of Amazon.com Inc. and different on-line sellers.
Sherman was introduced in earlier than Cohen got here on the scene and is extra of a brick-and-mortar retail veteran. Before turning into CEO in 2019, he labored at Advance Auto Parts Inc., Best Buy Co., Target Corp. and Home Depot Inc.
Olga Kharif and Jeran Wittenstein, Bloomberg