Current Gamestop CEO's Vesting Schedule. 2 Weeks And Then Cohen's Turn?
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| [u/commentsonyankees](https://www.reddit.com/user/commentsonyankees/) | [Reddit](https://www.reddit.com/r/GME/comments/mhfqa2/current_gamestop_ceos_vesting_schedule_2_weeks/?utm_source=share&utm_medium=ios_app&utm_name=iossmf) | 

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[DD 📊](https://www.reddit.com/r/GME/search?q=flair_name%3A%22DD%20%F0%9F%93%8A%22&restrict_sr=1)

I've never submitted DD before, but I commented this in the daily chat and decided to dig a little deeper.

Tl;dr: The current CEO, George Sherman, is on a vesting schedule and due to receive roughly 84,000 shares on April 15th. The board could be waiting for this day before announcing Ryan Cohen as the new CEO.

For those who might be newer to finance or business, executives are often given contracts with vesting schedules when they are hired. For example, if a new CEO is hired, they might give him a 3 year vesting schedule for a million shares of the company.

This means that the new CEO is owed a million shares, but they won't receive it until they have worked there for 3 years. Wouldn't want someone to take the shares and jump ship, right? Also, what if they just suck and their job and don't make it past the first year?

Here is a document from the SEC that details the shares George Sherman is owed: <https://www.sec.gov/Archives/edgar/data/1326380/000119312519106755/d725685dex101.htm>

Here is the important part: *"One-half of the Restricted Shares granted pursuant to Section 1(a) shall vest in equal annual installments on each of the first, second, and third anniversaries of the Effective Date."*

Essentially, George Sherman is on a 3 year vesting schedule to receive all of the stock that he is owed. Only 50% is vested through time, the other 50% is based on performance goals. So it shakes out like this:

503,356 potential shares for Sherman to earn. Half of that is based on time, so 251,678 shares. These vest on the first, second, and third anniversaries of his hire date, which was April 15th, 2019, by the way. So, he is owed 83,892 this coming April 15th.

Why is this important? To be honest, I'm not even sure if those shares will really matter for the price of GME, because they are restricted shares. If any Apes know more on this, please feel free to chime in, but my main theory is that the Gamestop board is purposely waiting for the shares to vest before they replace Sherman with Ryan Cohen.

Like terminating an employee before they get their pension, firing an executive right before they are owed a big chunk of cash or stock is often seen in a negative light. It could even lead to lawsuits. And at the other end of this, they may be refraining from making any announcements because hedge funds can claim that the board is purposely waiting for Sherman to get more shares.

This is purely theoretical and not financial advice in any way or form. I'm simply making an observation on a contract that the CEO of Gamestop signed almost 2 years ago. Make with that information what you will. Personally, I'll be doing nothing.
