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[geemong]

GameStop loses CEO in latest management shakeup



GameStop's George Sherman will step down as CEO in the biggest shakeup at
the video game retailer, giving top shareholder Ryan Cohen more control as he leads
the company's shift to e-commerce.

The company's shares, which were at the heart of a Reddit-driven trading frenzy, jumped
9 per cent in premarket trade on Monday after GameStop said Sherman would resign on or
before Jul 31 and that it had started looking for a successor.

Reuters had earlier reported that GameStop's board was working with an executive headhunter
on the CEO search and that its directors had spoken to potential candidates from gaming,
e-commerce and technology sectors.

GameStop also said Sherman had refused to receive compensation for his role as a director,
both before and after separation date, and had agreed to cancel his 2020 performance-vested
restricted stock award.

Sherman has already forfeited more than 587,000 shares for failing to meet his performance
targets, a regulatory filing showed last week.

Sherman's move to step down comes as Ryan Cohen, co-founder and former CEO of online pet
food company Chewy Inc, tightens his grip on GameStop after taking over as chairman earlier
this month. Cohen's RC Ventures owns nearly 13 per cent of GameStop, according to Refinitiv
data.

GameStop's former CFO, Jim Bell, and former chief customer officer, Frank Hamlin, are among
the senior executives who have left the company in recent weeks.

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