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GameStop shares rose more than 1,500% this month. The rally inflated the company’s market value to over $ 20 billion.
GameStop Corp.’s frantic journey it turns the fortunes of its leaders, at least on paper.
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Video game retailers have seen their stakes rise by about $ 1.3 billion as a result of the Reddit-fueled business frenzy, which saw GameStop shares rise by more than 1,500% this month, according to data compiled by Bloomberg.
CEO George Sherman holds the largest share of the company’s senior employees, and share awards are expected to be in the coming years worth more than $ 700 million. Chief Financial Officer James Belll has a stake valued at approximately $ 170 million, while Director of Customer Service Frank Hamlin has a stake of over $ 120 million.
Part of the compensation is related to the company’s performance, and in order for the directors to obtain these payments, GameStop must maintain its share price. The rally increased GameStop’s market value to more than $ 20 billion, from $ 1.3 billion in fines in 2020, even though the retailer’s sales fell 22 percent in its last fiscal year and the company lost $ 471 million. of dollars.
A GameStop representative did not immediately respond to a request for comment.
GameStop is among the companies that have grown in value recently, as investors continue a steady wave of short stock acquisitions promoted on the Reddit WallStreetBets forum. While the focus of the forum’s campaign was on hedge funds, some of the most outspoken Reddit operators presented their efforts as a populist stance against generational inequality and saving the richest.