GameStop Corp (NYSE: GME) is now without a chief operating officer. The company filed an 8-K Friday, indicating that it had entered into a Separation and Release Agreement with Jenna Owens, whom was Executive Vice President and Chief Operating Officer.
While it has widely been reported by media that Owens had elected to leave, the details provided by GameStop don’t exactly state that. Rather, it points to Owens being terminated without cause at the election of the company.
Owens joined the company just in March, meaning her stint with the company lasted a little over seven months. At the time of her hiring, she had agreed to an annual salary of $200,000, in addition to a sign-on bonus of $2.5 million, which is to be paid in monthly installments over a period of twenty four months. The payment of the sign-on bonus was “subject to her continued service to the Company through the payment date of the applicable installment unless she is terminated by the Company without Cause.” At the time, she also received $9.0 million in RSU’s subject to a vesting schedule over four years, with the first RSU’s set to vest on the first anniversary of the grant.
The agreement also stipulated that in the event her employment is terminated without cause, she would be entitled to receive a number of severance benefits in a lump sum cash payment, which includes:
- (i) an amount equal to six months of her base salary,
- (ii) an amount equal to six months of COBRA premiums for Ms. Owens and her eligible dependents, and
- (iii) any sign on bonus installments which then remain unpaid.
In announcing the departure of Owens, the 8-K filed indicated that the departure was effective October 25, 2021, and that she would coincidently receive the above listed severance, suggesting that rather than leaving the company on her decision, she instead was terminated.
Further, it seems the company as a whole decided it no longer needs an operating officer, as Owens role is said to be absorbed by other members of the management team at GameStop.
GameStop last traded at $183.51 on the NYSE.
Information for this briefing was found via Edgar and GameStop Corp. The author has no 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.
