George Sherman, CEO of GameStop, a reported video game retailer, will leave the company after just two years and retire from $ 170 million thanks to the efforts of Reddit investors.
Mr Sherman will leave his position at the end of July. During its time, the company experienced a $ 700 million loss and a drop in sales, largely caused by the growing preference for online retailers and digital video game purchases. The mall is no longer what it used to be.
However, thanks to GameStop’s short-selling phenomenon earlier this year, Mr. Sherman will be leaving the company with a lucrative gain.
Mr. Sherman was hired in 2019, and despite reigning during the wave of meme headlines, he was unable to meet the performance quotas and lost $ 98 million in stock as a result.
However, he was also credited with leading the company through the coronavirus pandemic when other brick and mortar retailers succumbed to the financial strain of the blocks and fewer in-person customers.
Mr. Sherman previously worked as a senior executive at other brick and mortar dealers, including Advanced Auto Parts and Home Depot Inc.
The company hasn’t announced who will take on the role once Sherman steps down.
The CEO’s departure appears to align with the announcement earlier this month that Ryan Cohen, co-founder and former CEO of pet supplies company Chewy Inc, will take over as president of GameStop.
Other senior executives at the company, including former CFO Jim Bell and former chief customer officer Frank Hamlin, have also left the company in recent weeks.
Even if Mr. Sherman will walk away with a hefty reward, the company’s employees won’t share his recent stock market successes as the company has closed stores across the country.
In January, the stock skyrocketed from double digits to triple digits thanks to a campaign launched by Reddit investors who sought to thwart short sellers looking to profit from the ailing game retailer’s decline.
On Tuesday, the stock traded around $ 177, still climbing well above its double-digit price prior to the Reddit infusion.
The company took advantage of its recent success by selling $ 551 million worth of stock to accelerate the company’s transition into an e-commerce retailer.
Neither the company nor Mr. Sherman have stated why he is leaving the company, but his separation agreement states that he would not be leaving due to any “wrongdoing”.
The stock is currently up 891.3% since the beginning of the year.