GameStop (GME) – Get GameStop Corp. Class A Report hosted its annual shareholders’ meeting on June 2nd. Market trading saw GME shares soar 10% the same day, though a fair portion of this can be attributed to the company’s Q1 earnings, which were announced on June 1st.
During the annual meeting, key proposals were approved, including a stock split and GME’s 2022 Incentive Plan. No surprises were to be had – everything went as expected by the company’s Board.
Here’s what you, as an investor, should know about what happened during GameStop’s 2022 Shareholders Meeting.
Figure 1: GameStop Stock: Everything That Happened During GME’s 2022 Shareholders Meeting
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(Read more from Wall Street Memes: GameStop Stock Q1 Earnings: Business As Usual)
All Proposals Approved
During this year’s GameStop shareholder meeting, all the agendas put to a vote were approved. These were:
- The election of six directors to serve until next year’s Annual Meeting – Furlong and Cohen being among them.
- The approval of GameStop’s 2022 Incentive Plan, wherein 8 million shares of common stock will be available to be issued to attract, retain, and motivate GameStop’s high-quality management team.
- The compensation of the company’s executives.
- The rectification of the audit committee Deloitte & Touche as the public accounting firm for the year.
- A stock split via a dividend, whereby GameStop common stock’s total number of shares will be increased to one billion.
As expected, after GameStop’s board strongly urged the approval of each of these items, shareholders voted in the affirmative.
Stock Split Approved But No Yet Executed
The most anticipated item during the GME’s meeting was the company’s stock split via dividend plan. It’s important to note though, that though the proposal was approved by shareholders, GameStop’s management has not yet made a final decision about the stock split.
Questions raised by shareholders on the ratio of the split and the effects the split will have on share price have not yet been addressed by the company.
The next step, according to GameStop’s Board, will be to proceed with the amendment of the charter to include the increase in the number of authorized shares. Soon after this approval, and after an analysis of market conditions, the Board will determine when, if, and at what ratio GME’s stock will be split.
Did “The Apes” Get the News They Wanted?
GameStop’s post-shareholder meeting reaction was not as bombastic as expected. Shares traded sideways after hours and GME was actually down 2% at the beginning of the following day’s pre-market trading.
During the meeting, GameStop CEO Matt Furlong answered questions from shareholders regarding the company’s business and new initiatives, especially in the crypto, NFT, and Web 3.0 spaces. Furlong also reinforced GameStop’s vision for its physical stores, which he sees as a still integral part of the company’s future. Addressing shareholders directly, he reiterated the value retail investors place on the company:
“Please trust that we will continue to fight for you and your interests as stockholders. We know that many of you are individual stockholders rather than institutional investors. We never take your enthusiasm, or your investment, for granted. I speak for the full Board when I say that we are proud to be aligned with you. “
Furlong also answered questions regarding whether GameStop will allow IRA and 401k shares to be registered directly with their transfer agent, Computershare (as it turns out, the latter option is not workable at the moment).
To sum, though several large and important proposals were (unsurprisingly) approved, this was largely a “business-as-usual” event for GameStop. Upcoming events, however, including the company’s stock split, may make much greater waves in the market.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)
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