GameStop CEO George Sherman will be leaving the company soon, but not empty handed:
As a condition of his exit, GameStop is speeding up the time frame for Sherman to receive the shares, generating the award.
Sherman, who has been CEO since April 2019, forfeited $98 million worth of stock this month because he did not meet performance targets, GameStop disclosed last week.
Still, he stands to receive a stock payout currently worth $179 million 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.
This strikes me as bad policy and poor corporate governance, especially for a company that is losing a lot of money and facing rapidly declining sales. Why should an executive be rewarded simply for sticking around, as opposed to actually accomplishing something?
Why should an executive be rewarded simply for sticking around, as opposed to actually accomplishing something? $GMETweet
I am hoping the new board, which will be chaired by Chewy founder Ryan Cohen and includes several other former Chewy executives, will put a stop to payment for no performance. After all, GameStop is already being robbed enough:
Two dozen cars squealed up to a GameStop store in Emeryville early Thursday and their occupants smashed the front door glass, broke inside and rifled the store shelves, police said.
An unknown amount of goods, including collectible figurines, was taken from the store at 3980 Hollis Street shortly after midnight.
Dig into these posts for more on GameStop:
- GameStop To Dump CEO
- Reddit Up, Michael Jordan Down as GameStop Soars
- In GameStop, An Unlikely Community
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