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Departing GameStop CEO given $179m golden parachute

Departing GameStop CEO given $179m golden parachute

The CEO of GameStop, George Sherman (pictured), is receiving $179 million for leaving his job.

That's according to reporting from Reuters, which says that the exec will be given a huge sum of money for stepping down. This is because - as of last year - GameStop rewarded Sherman with stock tied to his time at the company rather than his performance.

At that point in time, GameStop shares were worth a fraction of their current value. As of market close on April 21st, the company's stock price was $158.51; for much of 2020, it wasn't worth more than $10. In other words, what would have been "reasonable" compensation for leaving his role - whatever that even means anymore - has become an absolutely absurd amount of money by any standard.

GameStop announced earlier this week that Sherman was stepping down. This came in the wake of reports that the company was looking for a new CEO, with new chair Ryan Cohen looking to take the firm in a more e-commerce-focused direction.

The company has had a rather manic start to 2021; in January, Reddit users from the r/WallStreetBets subreddit were able to drive GameStop's stock price up massively due to the high levels of financial institutions betting against the games retailer.

CFO Jim Bell announced he was leaving in February, but reports emerged shortly after saying that he had been forced to resign. GameStop has also hired Amazon and Google vet Jenna Owens as its new COO.


PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site PCGamesInsider.biz. In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for GamesIndustry.biz, VGC, Games London, The Observer/Guardian and Esquire UK.

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