GameStop Corp (NYSE:GME) managed to avoid a confrontation with a pair of investors demanding changes to its board of directors, the company announced Monday.
The video game retailer agreed to add two independent directors to its board after Hestia Capital Partners LP and Permit Capital Enterprise Fund LP announced in March that they planned to nominate four candidates to run for director positions at the company’s 2019 meeting of shareholders.
Its shares leveled up 0.4% to $10.20.
READ: GameStop stock ticks up as major shareholder raises proxy fight
In exchange the firms withdrawing their nominations, GameStop will select one of the four people to serve as an independent director. The other director will be selected by GameStop in consultation with the two firms, which own a combined 1.3% stake in the company.
Hestia's original four nominees include its own CIO Kurt Wolf; Don Bell, former CEO of magicJack VocalTec; Chris Carvalho, former CEO of Kabam; and Liz Dunn, founder and CEO of Pro4ma Inc.
The new members will be selected by the end of April. Going forward, the Grapevine, Texas company’s board will consist of 11 directors, nine of whom will be independent.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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