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GameStop's Departing Executives Getting $290M Worth Of Vested Stocks On Their Way Out

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GameStop's Departing Executives Getting $290M Worth Of Vested Stocks On Their Way Out

This year's rise in the share price of GameStop Corp (NYSE: GME) has created a windfall for some departing executives.

  • Executives who are leaving the organization are getting vested stocks valued at roughly $290 million, The Wall Street Journal reports.
  • The executives' separation agreements include terms that allow stock they were awarded while working at the company to vest when they leave.
  • The company's Chief Executive Officer George Sherman, who will be stepping down by July 31, has 1.1 million restricted shares, valued at about $169 million as of Friday's close.
  • Frank Hamlin, who resigned as chief customer officer in March, had restricted shares valued at $33.5 million as of Friday.
  • The company's merchandising chief Chris Homeister, who is planning to leave the company, has 289,000 restricted shares valued at around $43.6 million as of Friday.
  • Former GameStop finance chief James Bell had restricted shares of $43.6 million as of Friday.
  • Shares of video game retailer GameStop Corp. as well as other heavily-shorted stocks such as AMC Entertainment Holdings Inc. (NYSE: AMC) and BlackBerry Ltd. (NYSE: BB) skyrocketed in January amid a rally fueled by retail traders belonging to the subreddit channel r/WallStreetBets. The traders bid up the stocks to create a short squeeze.
  • GameStop's shares jumped last week after its CEO said he would leave before the end of July. 
  • On April 13, the company said it is redeeming senior notes worth $216.4 million due in two years, a move that would leave the company mostly debt-free.
  • GameStop's shares closed at $151.18 on Friday. 
 

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