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Sources tell FOX Business’s Charlie Gasparino that investigations are forcing Robinhood to slow down its planned IPO.
After weeks of resounding attention to the headlines of a social media-fueled stock market frenzy, GameStop announced on Tuesday that its CFO Jim Bell will step down as of March 26.
The reason for Bell’s resignation was not immediately clear. In an SEC filing Tuesday, GameStop said Bell’s resignation was “not due to a disagreement with the company on any matter relating to the operations, policies or practices of the company, including accounting principles and practices.” .
GAMESTOP’S STOCK IS RISING AS KITTY ROARING DOUBTS ITS STAKE
According to another filing with the SEC detailing the terms of Bell’s employment contract when he joined the retailer in 2019, Bell could “terminate his employment within 12 months due to any of the five events. following “:
- A significant decrease in the executive’s base salary or the target amount of the executive’s annual bonus;
- A significant decrease in the authority, duties or responsibilities of the executive;
- Any other material breach of this agreement by the company;
- The company moves the executive’s main job site out of the Dallas / Ft. Worth metro area; or
- In the event of the sale of substantially all of the activities and assets of the Company, of a failure by the Company to sell, or of a refusal by the principal purchaser of assets to assume, the then continuing obligations of the Company under this Agreement.
In one such event, Bell was required to provide 90-day notice, with GameStop having 30 days to “remedy the situation”.
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FOX Business asked GameStop which of these “events” triggered Bell’s resignation, but a GameStop spokesperson declined to comment further on the announcement.
In the company’s press release announcing the change, GameStop thanked Bell “for its significant contributions and leadership, including its efforts over the past year during the COVID-19 pandemic.”
GameStop had been struggling even before the pandemic devastated the retail industry, announcing store closures to stay afloat. The company’s shares have become the target of short sellers. Hedge fund giant Melvin Capital was one of the greatest “shorts” and ultimately the firm found itself in a face-to-face showdown with retail investors on forums like Reddit’s r / WallStreetBets.
The social media platform has driven a trading frenzy which saw GameStop’s stock price climb to $ 347.51 at the end of January after trading in the double-digit low a few weeks earlier. On Tuesday, the stock closed at $ 44.97.
| Teleprinter | security | Latest | Change | % Change |
|---|---|---|---|---|
| GME | GAMESTOP | 44.97 | -1.03 | -2.24% |
This activity has raised new concerns about market volatility and has garnered audiences on Capitol Hill.
Bell was appointed CFO and Executive Vice President in June 2019. Prior to joining GameStop, Bell was CFO and Interim CEO of Wok Holdings, Inc., the parent company of PF Chang’s, Pei Wei, and True Food Kitchen restaurants. . He was also Executive Vice President and Chief Financial Officer of RLH Corporation and President and Chief Executive Officer of Coldwater Creek, Inc. In addition, he held senior financial positions at Harry & David Holdings, Inc. and The Gap plus early in his career.
Bell received his MBA from the University of Maryland and a BS in Economics from the US Naval Academy. After graduation, Bell served as a naval flight attendant leading a squadron and air operations in the United States Navy from 1989 to 1998.
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The company has launched a search for the permanent replacement for Bell, noting that it is looking for a CFO with “the skills and qualifications to accelerate the transformation of GameStop.” The research, which will assess internal and external candidates, is being conducted by a “leading executive search firm”.
If no permanent replacement is in place when Bell leaves, GameStop intends to appoint Diana Jajeh, Chief Accounting Officer and Senior Vice President, as Interim Chief Financial Officer.
Jaejeh, who started his career at PricewaterhouseCoopers and went on to take leadership positions at companies such as Visa and elf Cosmetics, has over two decades of experience as an auditor, controller and head of corporate finance.
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