Activist Investors Ask GameStop for More Changes, 2 Board Seats
An activist investor group is asking for two seats in the GameStop (NYSE: GME) boardroom along with some drastic changes to the video game retailer's business. The group, led by Hestia Capital Partners and Permit Capital Enterprise Fund, holds a substantial portion of GameStop's shares, and the company has a history of following this group's suggestions in recent years.
Hestia and Permit filed an alternative proxy form for GameStop's annual meeting, suggesting two new director candidates. Adding these names to the board would imply support for the group's proposed operating changes, including drastic cost cuts and a management compensation structure more closely related to the creation of shareholder value. Executive pay has been rising recently while the company has burned cash and share prices have plunged.
Image source: Hestia Capital and Permit Capital.
Source Fool.com
