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Gamestop store in Kahala Mall Shopping Center, Honolulu, Hawai. © Brodogg1313 | Megapixl.com
The CEO of gaming company GameStop Corp (NYSE:GME), Sherman George E Jr has forfeited 587,000 restricted shares after failing to meet his performance targets.
At the current market price, these shares are worth US$97.75 million. The forfeited shares were granted to George when he took over the CEO job in April 2019 as part of his incentive package. Despite this forfeiture, his restricted shares in the company still stand at 1.77 million, worth US$245.5 million as on Wednesday’s close.
“… Forfeiture of restricted shares originally granted on 4/15/19 (15 April 2019) under the Make Whole Inducement Award Agreement based on attainment of 0% of stated performance target,” the company said while explaining the rationale behind the forfeiture of stock.
In addition to the CEO, Gamestop’ Chief Merchandising Officer Chris Homeister had to forfeit 119,000 restricted shares after missing out on targets. Homeister’s forfeited shares are pegged at US$19.8 billion. Homeister still retains 388,357 forfeited shares in the company, which are worth US$64.67 million.
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Despite the shares of the company soaring by 800% this year after it became a Reddit favourite, its video-game stores have not been able to turnaround the slump in core business. Reddit users started buying the shares of GameStop enmasse at the beginning of this year, a trend that caused severe liquidity concerns for the bear market players who had shorted the GameStop shares.
Also Read: Is GameStop (NYSE:GME) Rallying Again?
As part of its turnaround strategy, the Dallas-based company recently appointed activist investor Ryan Cohen as its new Chairman. The company, aiming at a turnaround, has been rejigging its management team.
