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After weeks of attention in the headlines of a stock trading frenzy fueled by social media, GameStop announced on Tuesday that its chief financial officer, Jim Bell, will step down from March 26.
The reason for Bell’s resignation was not immediately clear. In a filing by the SEC on Tuesday, GameStop said Bell’s resignation “was not because of any disagreement with the company on any matter related to the company’s operations, policies or practices, including accounting principles and practices.”
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According to a separate SEC file detailing the terms of Bell’s employment contract when he joined the retailer in 2019, Bell could “terminate his job in 12 months due to any of the following” five events:
- A material decrease in the Executive’s Base Salary or Target Value of the Executive’s annual bonus opportunity;
- A material decrease in the executive’s authority, duties or responsibilities;
- Any other material breach of this Agreement by the Company;
- The company relocates the Executive’s primary workplace outside of Dallas / Ft. Worth metropolitan area; or
- In the event of a sale of substantially all of the Company’s business and assets, a failure by the Company to assign, or a refusal by the principal asset purchaser to assume, the Company’s ongoing obligations under this Agreement.
At any of these events, Bell was required to notify within 90 days, with GameStop having 30 days to “remedy the condition”.
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FOX Business asked GameStop which of these “events” prompted Bell’s resignation, but a GameStop spokesman declined to comment further on the announcement.
In the company’s press release announcing the change, GameStop thanked Bell “for his significant contributions and leadership, including his efforts last year during the COVID-19 pandemic.”
GameStop had been struggling even before the pandemic devastated the retail sector, announcing the closure of stores to stay afloat. The company’s shares became the target of short-sellers. Hedge fund giant Melvin Capital was one of the biggest “sellers” and, finally, the company found itself in a stalemate facing retail investors in forums like Reddit’s / WallStreetBets.
The social media platform sparked a trading frenzy that saw GameStop’s share price rise to $ 347.51 in late January, after being traded in the double digits just a few weeks earlier. On Tuesday, the stock closed at $ 44.97.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP | 44.97 | -1.03 | -2.24% |
The activity generated new concerns about market volatility and stimulated hearings at the Capitol.
Bell was appointed CFO and executive vice president in June 2019. Prior to joining GameStop, Bell served as CFO and interim CEO for Wok Holdings, Inc., parent company of PF Chang’s, Pei Wei and True Food restaurants Kitchen. He also previously served as executive vice president and CFO of RLH Corporation and president and CEO of Coldwater Creek, Inc. In addition, he held senior financial positions at Harry & David Holdings, Inc. and The Gap 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 Navy flight officer, leading the squadron and flight operations in the United States Navy from 1989 to 1998.
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The company launched a search for Bell’s permanent replacement, noting that they are looking for a CFO with “the skills and qualifications to help accelerate GameStop’s transformation.” The survey, which will evaluate internal and external candidates, is being conducted by a “leading company in search of executives”.
If a permanent replacement is not in effect at the time of Bell’s departure, GameStop intends to appoint director of accountancy and senior vice president Diana Jajeh to serve as interim CFO.
Jaejeh, who started his career at PricewaterhouseCoopers and later held senior positions at companies like Visa and elf Cosmetics, has more than two decades of experience as an auditor, controller and corporate finance executive.