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  • Writer's pictureIshfaaq Peerally

GameStop New Board Members

GameStop new board members

GameStop New Board

  • 3 New members added effective immediately with current board increasing from 10 directors to 13

  • Three addition to board results from activism from Ryan Cohen (VC Ventures)

  • 4 directors not standing for reelection in June (including Chairman Kathy Vrabeck). Board size decreases to 9

GameStop new board members

New directors:

  1. Ryan Cohen

  • Founder and Former CEO of Chewy (sold to Petsmart in 2018)

  • Largest individual investor in Apple and investor in Wells Fargo (concentrated investor)

  • Owns about 13% of GameStop

  • Appointed to the Nominating and Corporate Governance Committee of the Board of GameStop

  • Not taking any compensation from GameStop

  • Ryan Cohen cannot do the following without the approval of the board during the standstill period (until around February 2022)

    • Buy more than 20% of the company - doing so will qualify him as an interested stockholder

    • Change the board of directors

    • Bring any proposal to shareholders

  1. Alan Attal

  • Appointed to the Compensation Committee of the Board of GameStop

  • Former Chief Marketing Officer (2017-2018) of Chewy

  • Former COO (2011-2017) of Chewy

  1. Jim Grube

  • Appointed to the Audit Committee of the Board of GameStop

  • Former CFO Vacasa

  • Former Senior VP of Finance of Hilton

  • Former CFO of Chewy

  • One of the Directors of Finance at Amazon (2007-2009)

Analysis and Conclusion

  • We will need to see concrete changes first to know quantitative impacts.

  • As for qualitative impacts, it can only be positive. The board of directors now have more skin in the game with the total insider ownership at 33%.

  • Insiders cannot loan their shares to short sellers and we know that 97% of shares are short. This can only mean that these short positions are highly leveraged and shares are being counted several times. Short squeeze is very likely.

  • Company now calls itself “a digital-first omni-channel retailer, offering games and entertainment products in its over 5,000 stores and comprehensive e-commerce properties across 10 countries.” With 34% of sales in the holiday seasons online, they are finally moving towards e-commerce. Ryan Cohen is a big asset.

  • Ryan Cohen could possibly become chairman in June

  • All of the board members are highly qualified

  • I keep my buy rating on GameStop (currently 20% of my portfolio)

GameStop New board members

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