GameStop (NYSE: GME) shares rose by more than 6% on Monday, after the video game retailer revealed that its current CEO, George Sherman, will be stepping down before the end of July.
As Chairman Ryan Cohen continues his overhaul of GameStop, CEO George Sherman has become the latest in a string of executives to leave the company as of recent. On Monday, Sherman confirmed he would be leaving his position effective July 31, marking the end of a tenure that failed to reverse falling sales and unattained performance targets.
The latest move does not come as a surprise, given that earlier this month Reuters reported on the rumour that the video game retailer was searching for a successor to take Sherman’s position. According to a company filing earlier in March, Sherman forfeited nearly 587,000 shares, after failing to achieve performance targets. The soon-to-be former CEO also gave up nearly $12 million in stock in order cover compensation-related taxes.
Shares of GameStop have risen by more than 721% since the beginning of the year, after a Reddit forum prompted unprecedented interest among retail investors. The company is planning to capitalize on the new gains by issuing shares, and selling as much as $1 billion in additional stock. Activist investor and GameStop Chairman Ryan Cohen is initiating the turnaround campaign, which is expected to see the company transition from physical retail to online commerce.
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Information for this briefing was found via GameStop and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
