by in
In the middle of a conflict for leadership, Enthusiast Gaming staff members have requested that their CEO step down. The publicly listed parent company of Luminosity Gaming has received a letter from the workforce demanding that Adrian Montgomery resigns his position.
The letter was reportedly penned by four VP-level executives who claimed that the publicly traded company’s strategic vision, staffing issues — particularly within the human resources department — and equity distribution were evidence of Montgomery’s mismanagement.
The current leadership of Enthusiast – notably the Chief Corporate Officer, Eric Bernofsky – responded to these worries by saying that they are unfounded. Bernofsky conveyed to the company’s workforce its dedication to them while also highlighting the “dramatically improved” financial performance of the firm as well as its status in the public markets.
This letter is an extension of a public effort that has been waged by Greywood Investments, the largest stakeholder in Enthusiast Gaming, to oust Montgomery and the board of directors and replace them with its own nominees. Enthusiast is owned by the investment group to the extent of 9.3 percent, while the board of directors holds 5.7 percent of the company, the majority of which was not purchased but rather given as a gift.
A representative for Greywood stated that the company was not involved in the letter that was written by the employees of Enthusiast. On the other hand, both the campaign and the employees are drawing attention to the fact that their economic interests do not correspond with those of the board.
Greywood is of the opinion that choices are being made by the board of directors that are not beneficial to the long-term health and prospects of Enthusiast as a result of the board’s lack of financial investment and the CEO’s excessive salary. Employees raised similar concerns about the plan to give 80 percent of restricted stock units (RSUs) to the board of directors and executives in the C-suite rather than to other employees.
It is possible that previous layoffs are also adding to the antagonism that exists between employees and management. Upcomer, the esports and gaming news site owned by Enthusiast, had its editorial team reduced in the month of March. The majority of the staff who were terminated were allegedly not given their promised yearly bonuses and were asked to sign non-disclosure agreements before they were eligible to receive one to three weeks of severance pay.
The second quarter will soon come to a close, and all financial reports should be complete by the middle of August. It is probable that these documents will fuel the next confrontation in the current proxy struggle for control of the board of directors of Enthusiast.
Enthusiast Gaming has a roster of players in various esports titles including Valorant, Apex Legends, Call of Duty, Rocket League, Overwatch, and Fortnite. These titles are covered by Enthusiast’s subsidiary esports teams such as Vancouver Titans, Seattle Surge, and Luminosity Gaming.
