Risk & Compliance

GameStop Board to See Mass Departure

Chewy co-founder Ryan Cohen, who owns a 13% stake in the retailer through his RC Ventures, has been pushing for changes at the company.
Lauren MuskettMarch 25, 2021

GameStop informed the U.S. Securities and Exchange Commission Wednesday that eight members of its board are expected to depart the company.

What Happened: The exodus spans names ranging from former Nintendo executive Reginald Fils-Aimé to Kathy Vrabeck, formerly a president at Activision Publishing, a unit of Activision Blizzard.

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Others expected to retire from the board at the 2021 annual meeting include Lizabeth Dunn, Paul Evans, Raul J. Fernandez, William Simon, James K. Symancyk, and Carrie W. Teffner.

GameStop said that its board had not yet “determined the definitive slate of nominees for election at our 2021 annual meeting.”

Why It Matters: Chewy co-founder Ryan Cohen, who owns a 13% stake in GameStop through his RC Ventures, has been pushing for changes at the retailer.

The company announced the constitution of a strategic planning and capital allocation committee this month.

Cohen will spearhead the committee, which will also include Alan Attal, a former Chewy executive, and Kurt Wolf as members.

On Tuesday, GameStop announced chief customer officer Frank Hamlin would be leaving the company. In February, the company’s CFO Jim Bell announced his resignation.

Diana Saadeh-Jajeh, who is currently serving as the chief accounting officer at the video game retailer, will take on the additional role of interim chief financial officer when Bell leaves the company on March 26.

GameStop released its fourth-quarter results on Tuesday. Earnings per share in the quarter rose 5.51% over last year to $1.34 and missed analyst estimates of $1.35.

In early 2021, the video game retailer emerged as a darling of Reddit retail investors who carried out a short squeeze.

Price Action: GameStop shares closed 33.79% lower at $120.34 on Wednesday and rose 7.61% in the after-hours session to $129.50.

This story originally appeared on Benzinga. © 2021 Benzinga.com.

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