Astonishing appreciation of the shares of Gametop, the largest game retailer in the United States, could make the company’s chief executive, George Sherman, a millionaire. When he leaves office as part of his closing contract on July 31, the executive is expected to make $ 179 million, which includes more than one million shares.
GameStop is creating uproar on the New York Stock Exchange, with accumulated gains of 900% between January and March this year. On Tuesday, the 20th, the stock closed at $ 158.53.
Sherman should refrain from leaving his post if he exceeds the amount received by many well-known officials from a large company. ViacomCBS CEO Joseph Ianniello received $ 112.9 million and JPMorgan Chase’s Jamie Dimon received $ 107.8 million in 2019.
GameStop decided to open Sherman’s payout of performance targets and results at the start of the epidemic last year and, in compensation, offered a package of shares, which were significantly lower at the time.
The company’s billionaire co-founder Ryan Cohen decided to replace Sherman, considered a veteran executive, with a new leader with skills suited to the company’s digital transactions. Gametop also made decisions to improve governance, including appointing new officers to key positions such as Chief Financial Officer (CFO) and Chief Technology Officer (CTO).
The American retailer is considered the largest in the world in its segment, with more than 5,000 stores in ten countries. The company has sold games and video game consoles since 1984, when it opened its first store in Dallas, Texas, under the name Babbage. In 2000, the company adopted the name GameStop and two years later, publicly raised $ 325 million on the New York Stock Exchange.
According to analysts, the progress of new consoles, such as the PS5, at the end of last year and the digital and omnichannel strategy (i.e. integration of physical stores with e-commerce) has boosted the company’s sales.