GameStop CEO Steps Down with a $170 Million Pay Out Published April 28th, 2021 - 05:00 GMT
GameStop s shares were around $177 Tuesday, a stratospheric rise from around $5 last summer; they skyrocketed in January thanks to traders on Reddit. (Shutterstock)
Highlights
Despite that, he will walk away with a sweetheart deal turbocharged by Reddit
The outgoing Gamestop CEO is leaving the company after just two years with a $170million pay out thanks to Redditers who boosted the retailer s value.
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George Sherman will step down as chief executive officer at the end of July following a tenure marked by falling sales and losses of $700 million.
GameStop s Outgoing Executives Are Getting Massive Paydays
Thanks to the growth in GameStop s stock price, four executives are headed out the door with many, many millions of dollars.
GameStop s current CEO George Sherman is leaving the company and retaining 1 million shares that are worth more than $150 million, but he s not the only departing executive headed out the door with a big payout. The Wall Street Journal reported that three other outgoing executives are set to leave the company with paydays in the tens of millions.
GameStop CFO James Bell, who resigned in February, holds shares worth more than $40 million. According to a report, Bell was forced out by new GameStop chairman Ryan Cohen.
GameStop CEO - who oversaw falling sales and losses of $700m - leaves with $170million payout thanks to Redditors who boosted company value
George Sherman will step down as chief executive officer at the end of July following a tenure marked by falling sales and losses of $700 million
Despite that, he will walk away with a sweetheart deal turbocharged by Reddit
Sherman, who has been CEO since April 2019, already forfeited $98 million worth of stock this month because he did not meet performance targets
But he stands to receive a stock payout currently worth around $170 million
That s because GameStop granted him more shares linked to his tenure at the company rather than to his performance as most companies do with their CEO
GameStop’s departing CEO to get ‘unconscionable’ package worth $173M after 2 years on the job
Updated 10:39 PM;
Has saying goodbye ever been so lucrative?
George Sherman, hired as CEO of GameStop Corp. two years ago, is leaving the Grapevine-based video game retailer with an exit package valued at $127 million, according to a regulatory filing.
Sherman also will get a big pay bump in June, about a month before his scheduled departure, when another 308,477 company shares will vest and become his. At GameStop’s closing price of just over $151 a share on Friday, those holdings would be worth roughly $46.6 million.
In total, Sherman will be walking away from GameStop with a package worth over $173 million, although the actual value will depend on the stock price, which has been highly volatile and is the reason for the big payouts.