GameStop CEO sells $12 million of stock in chain

FILE PHOTO: A GameStop store is seen in the Jackson Heights neighborhood of New York City, New York, U.S. (Reuters)Premium
FILE PHOTO: A GameStop store is seen in the Jackson Heights neighborhood of New York City, New York, U.S. (Reuters)
 1 min read . Updated: 18 Apr 2021, 06:06 AM IST Bloomberg

GameStop Corp. Chief Executive Officer George Sherman, who is expected to leave the struggling video-game retailer, disposed of almost $12 million in shares, with the proceeds earmarked by the company to pay compensation-related taxes.

The 76,097 shares were withheld by GameStop upon vesting to cover taxes related to the 2019 inducement award, according to a regulatory filing Friday. The shares were valued at $156.44 each, or about $11.9 million.

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Representatives of GameStop didn’t immediately respond to a request for comment.

Activist investor Ryan Cohen, the company’s incoming chairman, is spearheading a turnaround effort at GameStop, which is seeking a new CEO to replace Sherman, people with knowledge of the matter have said. Sherman earlier this week forfeited about $98 million in compensation after failing to meet performance targets.

Shares of GameStop have become a favorite of Reddit-reading day traders this year, sending the stock soaring, despite shrinking sales and losses in the latest fiscal year.

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