The run-up in the videogame retailer’s share price has enabled four executives to leave GameStop Corp. The people are leaving with the vested stock now valued at roughly $290 million. The separation agreements between GameStop and the four executives including George Sherman, the Chief Executive Officer. They have provisions to let the stock be awarded during the tenure vest when they leave.
Based on the Wall Street Journal analysis of GameStop Corp. securities filings, the fortunes that the executives stand to gain reflect the rapid rise of the company’s market value. The company became a darling of individual investors as the focus was of a turnaround steered by the activist investor and Chewy Inc. co-founder Ryan Cohen. Three out of the four executives joined the company in 2019.
Mr. Sherman is to step down by July 31st, says GameStop Corp. The company is also looking for a replacement. His exit agreement calls for the accelerated vesting of more than 1.1 million shares of the company. As of Friday’s close, these shares value roughly $169 million. His severance pay could be higher. According to the separation agreement, the CEO agreed to give up a minimum of $5 million in cash, stocks valuing $47 million, and other equity awards.