George Sherman has done an… arguably questionable job as the CEO of GameStop (GME). Under his tenure, the company fell to abysmal valuation, there was much talk of if GameStop would survive recent years, and the stock price was nearly non-existent before a concentrated effort groups such as r/WallStreetBets pushed it through the roof unexpectedly. All of that and more might be part of why George Sherman allegedly lost out on nearly $100 million worth of stock incentives.
The details of the situation above were recently revealed in a SEC filing that was formalized on Wednesday, April 15, 2021, as reported by Business Insider. According to the filing, George Sherman was offered around $98 million worth of restricted stock incentives when he took up the GameStop CEO position in April 2019. It was to be awarded based on his performance at the company. However, under Sherman, the company went through a number of poor performing years that saw the stock price fall to under $4 a share and many stores close. As such, the filing disclosed that Sherman forfeited the $98 million in stock due to underperformance.
There are a few highlights for GameStop in this last couple months as the company fully restructures to take better advantage of online services. The company has moved to take advantage of the volatility of its stock caused by r/WallStreetBets and other factors driving the stock price sky high by selling up to 3.5 million additional shares of common stock. Moreover, it’s retiring around $200 million of its long term debt to better its balance sheet and prepare for further steps ahead, which seemingly include getting into the PC and gaming monitor market.
However, Sherman even seemed a bit shaky through the previous month. The GameStop Q4 2020 earnings report conference call was short and abrupt, allowed no questions, and made no mention of the company’s ongoing stock situation. There has even been word that GameStop is already searching for a new CEO to take Sherman's place.
George Sherman’s place in GameStop’s transformation can been considered to be questionable at best if the SEC filing is any indication. That said, the company has been making moves left and right to capitalize on its ongoing situation. As high level executive transitions take place and priorities shift, stay tuned for the latest here at Shacknews.