The GameStop Corp (NYSE: GME) reportedly plans to fire CEO George Sherman and appoint a new executive director.
What’s happened
The Dallas-based company is working with a recruitment firm to replace Sherman, according to a Reuters report, citing “three people familiar with the matter.” Sherman became CEO in April 2019 after serving as CEO of Victra, one of Verizon (NYSE: VZ) Authorized Retailer.
The CEO position at GameStop has been something of a revolving door for the past three years: J. Paul Raines, who was promoted from Chief Operating Officer to CEO in 2010, stepped down in January 2018 after spending three months with a brain tumor recurrence was on sick leave; he passed away in March 2018.
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Executive Vice President Michael K. Mauler became the new CEO in February 2018, but resigned abruptly three months later, citing “personal reasons”: Shane Kim, a GameStop director and former Microsoft (NASDAQ: MSFT) employee, introduced himself as Interim director available and served for nearly a year.
Why it matters
GameStop was at the center of controversy this year as retail investors bought unexpectedly large amounts of shares, forcing large hedge funds to cover short positions and causing online broker RobinHood to abruptly suspend trading in GameStop and other stocks .
The company’s stock trading took on oscilloscope quality as retail investors continued to buy stocks in bulk; the problem sparked Congressional investigations into the stock market and renewed calls by some politicians, including Senator Elizabeth Warren (D-MA), for stricter Wall Street regulations.
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The potential removal of Sherman as chief executive would be the second big management change for GameStop this year after Ryan Cohen, the co-founder and former CEO of online pet food company Chewy Inc (NYSE: CHWY), joined the board in January.
GME price campaign: GameStop stock was trading down 14% to $ 136.24 at the time of publication.
(Photo by Mike Mozart / Flickr Creative Commons.)
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