GameStop CEO Disposes of $12 Million of Stock in Chain

(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.

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.

(Corrects details of transaction starting in first paragraph.)

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