April 29, 2021
The Daily Mail – GameStop CEO – who oversaw falling sales and losses of $700m – leaves with $170million payout thanks to Redditors who boosted company value
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.