GameStop CFO steps down after Reddit driven rally

The company said in its SEC filing that Bell's resignation was not because of any disagreement with the company "on any matter relating to the Company's operations, policies or practices

San Francisco: Video game retailer GameStop has announced that Jim Bell, Executive Vice President and Chief Financial Officer, has resigned, after recent wild swings in GameStop’s stock triggered by retail traders on Reddit.

However, the company said in its SEC filing that Bell’s resignation was not because of any disagreement with the company “on any matter relating to the Company’s operations, policies or practices, including accounting principles and practices”.

Bell will leave the company on March 26 and GameStop has announced a “succession plan.”

GameStop stock fell about 5 per cent to $42.75 in extended trading after the announcement late on Tuesday.

“The company thanks Mr. Bell for his significant contributions and leadership, including his efforts over the past year during the COVID-19 pandemic,” GameStop said in a statement.

The company has initiated a search for a permanent CFO with the capabilities and qualifications to help accelerate GameStop’s transformation.

If a permanent replacement is not in place at the time of Bell’s departure, GameStop intends to appoint Diana Jajeh, who is currently Senior Vice President and Chief Accounting Officer, to the role of interim Chief Financial Officer.

CNBC reports, citing sources, that while Bell’s exit was unrelated to the recent wild swings in GameStop’s stock spurred by retail traders on the Reddit social media site, “his departure was initiated by the company”.