What just happened? GameStop appointed Nintendo veteran Reggie Fils-Aimé to its board of directors. Fils-Aimé will take the position almost exactly one year after he retired as president of Nintendo of America. The company has also tapped two other executives in an apparent attempt to reinvigorate its struggling brand.
Two other execs were appointed as well. Former Walmart President Bill Simon and PetSmart CEO J.K. Symncyk will fill board positions effective immediately, while Fil-Aimé will step in on April 20, just a year and five days after he retired from Nintendo.
A total of six directors are stepping down from the board. Four will retire in June of this year, and two others will leave in June 2021. The shakeup appears to be part of an effort to reinvigorate the board of directors in light of the new tenure “Committee refreshment” guidelines the company is establishing.
“The Board refreshment and governance enhancements announced today represent an important milestone in GameStop’s transformation as we continue to evolve the Company’s business strategy for long-term success,” said GameStop CEO George Sherman.
Under the new board governance, the median director tenure will be one year. Previously, median tenure was eight years. From now on, independent directors will serve no longer than 10 years. Additionally, Board Committee members and chairs will rotate every five years.
GameStop first started realizing its troubles in 2014 as digital games sales began to take hold of the market, and the company has floundered for the last couple of years. After reporting record losses for 2018, the brick-and-mortar store chain has cut costs and implemented new ideas to attract customers. Most recently, GameStop laid off 14 percent of its workforce as its stock tumbled to a record low.
In a tweet on Monday, Fils-Aime seemed enthusiastic at the prospect of helping lift GameStop from its slump.
“The gaming industry needs a healthy and vibrant GameStop,” the former exec said. “I look forward to being a part of [the] Board and helping to make this happen.”