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GameStop shares soared more than 1,500% this month. The rise has inflated the market value of the firm to more than US $ 20 billion.
GameStop Corp’s frantic journey is transforming the fortunes of its leaders, at least on paper.
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The video game retailer’s top executives have seen the value of their holdings grow by around $ 1.3 billion in the wake of the Reddit-driven commercial frenzy that has caused GameStop shares to soar more than 1,500 this month %, according to data compiled by Bloomberg.
CEO George Sherman holds the largest stake among the company’s senior employees, and stock awards are expected to be awarded in the coming years worth more than $ 700 million. Chief Financial Officer James Belll owns a stake valued at approximately $ 170 million, while that of director of customer service, Frank Hamlin, is valued at more than $ 120 million.
Some of the pay is tied to running the business and for executives to get those payments, GameStop needs to keep the price of its shares. The rebound has inflated GameStop’s market value to more than $ 20 billion from $ 1.3 billion worth of 2020 fines, even when retailer sales fell 22% in its final year tax and the company lost $ 471 million.
A GameStop representative did not immediately respond to a request for comment.
GameStop is among the companies that have increased in value lately as investors continue with a relentless wave of short stock purchases promoted on the RedSit WallStreetBets forum. While the focus of the forum campaign has been on hedge funds, some of the most open Reddit traders have portrayed their efforts as a populist stance against generational inequality and financial bailouts to the richest.