GameStop's Outgoing CEO Gets To Keep 1 Million Shares, Worth Millions
George Sherman is leaving GameStop with a heavy wallet.
GameStop's CEO George Sherman is leaving the company this year, and he's exiting the video game retailer with a package that could be worth a giant sum of money.
GameStop disclosed in a regulatory filing that Sherman--who started with GameStop in 2019--will become entitled to "accelerated vesting" of his outstanding time-vested shares of restricted stock units. According to The Wall Street Journal, Sherman has banked more than 1.12 million of these restricted stock shares, valued at more than $184 million this week.
Sherman will receive the payout when he leaves GameStop officially, and he must also remain in compliance with his "confidentiality, non-compete, non-solicitation, and other protective covenants included in his employment agreement," according to GameStop.
As part of Sherman's exit from GameStop, he has voluntarily given up his other severance rights from his agreement. This includes the cancellation of his 2020 performance-vested restricted stock award, which amounts to 308,477 units of common stock.
It's also mentioned in the filing that Sherman will remain a director on GameStop's board and that he has declined compensation for that job.
Sherman is not the only executive whose bank account is due to grow massively due to the GameStop stock price situation. Billionaire Ryan Cohen, who is now the chairman of GameStop's board, holds a 12% stake in GameStop that is now worth a mind-boggling amount.
GameStop is attempting to cash in on the surge in its stock price by selling 3.5 million shares to generate cash to accelerate its transition to become a more successful company.
Looking ahead, GameStop is currently conducting a search to find a new CEO who has the "right skills to meet changing business requirements" to lead GameStop into the future. Working with a third party, GameStop's board is now looking to find candidates who have the "capabilities and experience to help accelerate the next phase of [GameStop's] transformation."
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