It’s a profitable time to be leaving GameStop Corp.’s C-suite because the run-up within the videogame retailer’s share worth has enabled 4 executives to depart with vested inventory now valued at roughly $290 million.
Separation agreements between GameStop and the 4 executives, together with Chief Govt Officer George Sherman, have provisions that permit inventory awarded throughout their tenure to vest once they depart. Whereas such a dealing with of management transitions isn’t atypical, it does doubtlessly enable the executives to promote their shares close to GameStop’s traditionally excessive ranges.
GameStop’s shares closed Friday at $151.18. They hit an intraday peak of $483 in late January after ending 2020 at slightly below $19.
The fortunes the executives stand to realize, based mostly on a Wall Avenue Journal evaluation of latest GameStop securities filings, mirror the fast and strange rise within the firm’s market worth because it turned a darling of particular person traders and the main target of a turnaround steered by activist investor and Chewy Inc. co-founder Ryan Cohen. Three of the 4 executives joined the corporate in 2019.
GameStop has mentioned that Mr. Sherman will step down by July 31 and that it’s trying to find his substitute. His exit settlement requires the accelerated vesting of greater than 1.1 million GameStop shares, in response to filings, valued at roughly $169 million as of Friday’s shut.