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GameStop Corp. CEO to get millions on his exit

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.

Handling such leadership transitions is not atypical, but it does not allow the executives to sell their shares near GameStop’s. On Friday, the shares closed at $151.18. In an intraday peak, they hit a peak of $483 in late January after the ending of 2020 at just below $19.

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.

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