- After less than two years in the position
(exechange) — Grapevine, Texas, June 7, 2023 — Matt Furlong, chief executive of GameStop, leaves his position. As announced by GameStop Corp. in a news release and in a regulatory filing published on Wednesday, June 7, 2023, Matthew (Matt) Furlong has left his post as chief executive officer at the videogame retailer, after less than two years in the role, effective June 5, 2023.
Following Matt Furlong’s departure, the position of Chief Executive Officer will not be filled for the time being.
GameStop disclosed that its Board of Directors has elected Ryan Cohen as Executive Chairman, effective immediately.
Cohen’s responsibilities include capital allocation and overseeing management.
On June 7, 2023, the Board appointed Mark H. Robinson as the Company’s General Manager, effective immediately.
Additionally, Robinson was appointed as the Company’s principal executive officer.
Robinson’s responsibilities will include administrative matters, corporate development, legal affairs and support for GameStop’s holdings, including the oversight of other executive officers besides the Executive Chairman, and he will report directly to Ryan Cohen, as Executive Chairman.
Robinson will continue to serve in his roles as the General Counsel and Secretary of the Company.
No reason given
In the announcement, GameStop did not explicitly explain the reason for the move.
Precise information regarding Matt Furlong’s future plans was not immediately available.
“Terminated”
GameStop said: “GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today disclosed that its Board of Directors has elected Ryan Cohen as Executive Chairman, effective immediately. Mr. Cohen’s responsibilities include capital allocation and overseeing management. In conjunction, the Company’s former CEO has been terminated.”
GameStop further said: “On June 5, 2023, the Board of Directors (the “Board”) of the Company terminated Matthew Furlong as President and Chief Executive Officer of the Company, effective immediately such that, after giving effect to such termination, Mr. Furlong was no longer employed by GameStop Texas Ltd., the Company, or any of their affiliates.”
“Did not result from any disagreement”
GameStop stated, regarding the change: “On June 5, 2023, Mr. Furlong resigned as a director of the Company, effective immediately. Mr. Furlong’s resignation did not result from any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”
Share price decline since June 2021
The announcement follows a decline in GameStop Corp.’s share price of 60% since June 2021. June 2021 is the month in which Furlong’s tenure as CEO began.
In the position of CEO since 2021
Matt Furlong became CEO of the Company in 2021.
Matthew (Matt) Furlong served as the Company’s President and Chief Executive Officer (in addition to his role as a director), a role he held since June 2021.
Prior to joining the Company, Furlong served as Country Leader, Australia for Amazon (NASDAQ: AMZN) since September 2019 and in various other roles at Amazon since October 2012, including as Director, Technical Advisor, Amazon North America.
Prior to joining Amazon, Furlong served in various roles at The Procter & Gamble Company focused on brand, marketing and sales strategies.
No statement by Matt Furlong
The announcement of his departure as CEO does not include a statement by Matt Furlong.
40% of CEOs are forced out or fired
When CEO departures are announced, exechange determines the Push-out Score on a scale of 0 to 10 to assess how likely it is that the chief executive was pushed out or felt pressure to leave the position, with 0 being most likely a voluntary move and 10 being most likely a forced exit. Anything over a 5 indicates that there are valid reasons to believe an executive may have been pushed out.
Of the 313 CEO departures in the Russell 3000 Index evaluated over the past 12 months (June 7, 2022, to June 6, 2023), the average Push-out Score was 6.1, according to exechange data. References to conduct issues, disagreements and irregularities lead to the highest Push-out Scores. When performance issues, time with family or pursuit of other opportunities were cited as departure reasons, the average Push-out Scores were also significantly elevated.
Around 40% of the CEO departure events from the past 12 months received Push-out Scores of 8 or higher.
In other words, in the past 12 months, two in five departing CEOs were forced out or fired.
Push-out Score for Matt Furlong’s move determined
The Push-out Score regarding Matt Furlong’s move is explained point by point in the exechange report.
exechange reached out to GameStop and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 24.2023 ($).