The Daily Mail – GameStop CEO, who oversaw falling sales and losses of $700M, leaves with $170M payout thanks to Redditors who boosted company value
April 29, 2021
The outgoing Gamestop CEO is leaving the company after just two years with a $170million pay out thanks to Redditers who boosted the retailer’s value.
George Sherman will step down as chief executive officer at the end of July following a tenure marked by falling sales and losses of $700 million.
Despite that, he will walk away with a sweetheart deal that was turbocharged by this year’s furious meme stock rally.
Sherman stands to receive the huge stock payout because GameStop granted him more shares linked to his tenure at the company rather than to his performance as most companies do with their CEO, said Eric Hoffmann, a vice president at compensation consultant Farient Advisors LLC.
‘Investors like awards that are performance-based, that have hard pre-established financial goals that the executives have to meet to earn, as opposed to time-based shares, where they just have to hang on to get them,’ Hoffmann said.
About Eric Hoffmann
Leader, Information Services
Eric leads Farient’s data strategy, operational capabilities, partnerships, research, and client insights. With more than 20 years of human resource technology and data analytics experience, Eric’s work at Farient focuses on creating and delivering information and decision support to boards of directors, human resource professionals, and investors. Combining data analytics and visualization, Eric and his team create compelling narratives that lead to business insight and defensible decisions for his clients.
Eric has extensive experience in executive compensation and performance. From March 2005 to January 2011, he was the Technology Solutions Delivery Leader and a partner at Mercer. In support of Mercer’s compensation and benefits data and analytics business, Eric and his global, cross-disciplinary team delivered leading-edge SaaS-based client-facing and operationally driven data analytics solutions. Before that, Eric was a principal at Mercer, where he led a software development team. Eric holds a BS in computer science and mathematics from Purdue University and an MS in computer science from the University of Illinois at Urbana-Champaign.