As major changes at recent short-squeeze target GameStop (GME 3.87%) continue, its current CEO George Sherman is forefeiting over half-a-million shares originally given to him as an incentive. The 587,000 shares GameStop has decided to "repossess" are worth approximately $98 million at yesterday's market-closing price of roughly $167, Business Insider says.

The company's executive shakeup began when small Reddit investors from r/WallStreetBets carried out a short squeeze on GameStop earlier this year. The investment wave hammered several large firms holding massive short positions in the company. Some Redditors argued the short squeeze drove down GameStop's share prices artificially, leading other investors to avoid the stock.

Former Chewy CEO and activist investor Ryan Cohen also joined GameStop's board and began pushing for changes to its executive structure.

A red stamp saying "Forfeit."

Image source: Getty Images.

Current CEO George Sherman appears to be losing his position as well as his incentive shares, Reuters reports, with inside sources saying the company is seeking a new CEO. Sherman was picked as CEO exactly two years ago in April 2019. He is also a member of the company's board. There is no indication at this time he will leave the board of directors.

GameStop is reclaiming Sherman's 587,000 incentive shares as a forfeit "based on attainment of 0% of stated performance target," according to the related Securities and Exchange Commission (SEC) filing. Sherman retains ownership of 1,774,422 shares after the forfeit, worth around $291.3 million at yesterday's closing price.

Business Insider reports GameStop's Chief Merchandising Officer, Chris Homeister, is also forfeiting 119,000 shares worth approximately $19.9 million. Homeister still retains a 388,000-share stake in the company.

GameStop is in the process of shedding its debt and transforming itself into an online retailer, while Sherman's experience is mostly in brick-and-mortar retail, explaining his likely replacement as CEO.