What to expect from GameStop’s annual shareholder meeting on Wednesday
- Ryan Cohen is expected to be elected chairman of GameStop's board.
- The board of directors is set to be overhauled with majority of the incumbents expected to resign.
- CEO George Sherman, who will step down on July 31, is set to be elected to the board.
GameStop Corp. (NYSE: GME), which has been a favorite of the meme stock frenzy, is set to hold its annual shareholder meeting today. The company is expected to announce a slew of measures to put it on a path to post-pandemic recovery.
Shares of GameStop are up a staggering 1600% in a rally fueled by the members of Reddit board WallStreetBets. The stock is down by around 1% in the morning trading but up by more than 100% in the past month.
Ryan Cohen is expected to be appointed Chairman
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Chewy Inc. co-founder Ryan Cohen, who currently sits on the GameStop’s board, is touted to be elected the chairman of the board, according to The Wall Street Journal.
Cohen first disclosed a position in the video game retailer in August and started pushing the company to become more technology centric and move away from its bricks-and-mortar-focused business model. He currently holds approximately a 13% stake in the company, which is valued at more than $2.5 billion based on the current share price.
He was later appointed to the board in January, which first started the surge in GameStop shares. Investors believe his past experience including running the pet-supplies retailer Chewy, which he sold to PetSmart for $3.35 billion, will be helpful in turning around GameStop.
Overhaul of the board of directors
Cohen is expected to take over a smaller board with the majority of the incumbent board members expected to resign. The company has nominated five members to the board and three of those members have ties to Cohen from his Chewy days.
One of the nominees is chief executive George Sherman, who will be stepping down from the CEO position on July 31.
The company’s leadership has also seen a few changes with its chief financial officer, chief customer officer and chief merchandising officer departing in the last few months.
GameStop also appointed Jenna Owens as its new operating chief, and Matt Francis as its first chief technology officer, both of whom are former Amazon Inc. (NASDAQ: AMZN) executives.