GameStop recently announced the ‘Chief Executive Officer Succession Plan’ under which it announced that Chief Executive Officer George Sherman will quit the post before July 31 this year. But it seems that it is a lucrative time for Sherman and some other executives as they will be getting millions while departing. The vested stock of four executives currently valued at roughly USD 290 million. As per the agreements of separation between the company and executives, a provision allows them to vest stock awarded to them during their tenure while leaving the company. Such an agreement is not something very new and allows executives to sell their shares. Shares of GameStop are currently at an all-time high.
Three of the four executives that are leaving had joined the company in 2019. GameStop has already stated that it searching for Sherman’s replacement and his last day in the office would July 31 or even earlier. As per the exit agreement signed by him, he will be vested with more than 1.1 million GameStop shares. According to a securities filing, this is roughly valued at USD 169 million. The severance package could be even more but the outgoing CEO agreed to give up at least USD 5 million in cash. He also gave up stock valued at roughly USD 47 million for reasons not known. Sherman was once one of the largest individual shareholders of the company as he held roughly 2.4 per stake in the company.
Former finance chief James Bell held a share that was recently worth USD 43.6 million. Though the company has not given any official reason behind his departure it is believed that he was forced to leave by Ryan Cohen. The other one to resign from the company is Frank Hamlin, whose shares valued at USD 33.5 million. Chris Homeister is also about to leave the company and has nearly 289,000 shares due to vest. The approximate value of them would be USD 43.6 million. Executives leaving the company with big severance packages are not new. John Legere got USD 137 million in compensation while he was leaving T-Mobile in 2020.