TLDR
- GameStop CEO Ryan Cohen’s compensation package requires growing market cap from $9.3 billion to $100 billion and generating $10 billion in cumulative performance EBITDA to unlock full value worth roughly $35 billion
- Cohen receives zero guaranteed pay—no salary, cash bonuses, or time-vested stock under this performance-based plan
- The award consists of stock options for 171.5 million shares at $20.66 per share, divided into nine tranches with the first unlocking at $20 billion market cap
- Shareholders will vote on the package at a special meeting in March or April 2026, with Cohen recusing himself despite owning 8.3% of the company
- GameStop shares jumped over 4% after the Wednesday announcement and became the second-top trending name on Stocktwits
GameStop shares climbed more than 4% on Wednesday after the company revealed a massive compensation plan for CEO Ryan Cohen. The package could be worth roughly $35 billion if Cohen hits extreme growth targets.
The plan ties Cohen’s entire paycheck to performance. Zero guaranteed money. No base salary. No cash bonuses. No stock that vests just for being CEO.
Cohen must grow GameStop’s market cap to $100 billion. The company currently sits at $9.3 billion. That’s a 1,000% increase.
He also needs to generate $10 billion in cumulative performance EBITDA. These numbers unlock the full award value.
The compensation consists of stock options to purchase more than 171.5 million shares at $20.66 per share. The award splits into nine separate tranches.
Cohen can unlock smaller portions by hitting lower milestones. The first tranche vests when GameStop reaches a $20 billion market cap and $2 billion in cumulative performance EBITDA.
That first target requires roughly doubling the current valuation. Miss that hurdle and Cohen gets nothing.
Following the Musk Model
The structure mirrors Tesla CEO Elon Musk’s compensation plan. Musk’s package could reach $1 trillion if he meets all targets.
GameStop said the board created this plan to align Cohen’s interests with shareholder value. The parties reached an agreement on Tuesday.
Cohen didn’t participate in board discussions about his own pay package. Shareholders will vote on the proposal at a special meeting scheduled for March or April 2026.
Cohen owns 8.3% of GameStop through RC Ventures, making him the second-largest shareholder. Despite this stake, he’s sitting out the shareholder vote. The company wants other stockholders to decide.
The Challenge Ahead
GameStop faces tough headwinds. Annual revenue has dropped more than 35% since 2022. Gamers increasingly buy titles online instead of visiting brick-and-mortar stores.
The stock price has fallen 80% from all-time highs hit during the 2021 meme stock rally. Shares are down 38% over the past year.
But Cohen has delivered results since joining the board in January 2021. The company’s market cap grew 615% during his tenure, rising from approximately $1.3 billion to $9.3 billion.
GameStop cut selling, general and administrative expenses by 44.4% under Cohen’s leadership. The company shifted from a net loss of $381.3 million in fiscal year 2021 to net income of $421.8 million for the most recent trailing four quarters.
Cohen became CEO in September 2023 after steering the company through aggressive cost cutting. This included shuttering hundreds of stores.
GameStop shares traded up 3.6% in premarket activity Wednesday. The stock became the second-top trending name on Stocktwits, a website popular with individual investors.
The total award value of nearly $35 billion for Cohen excludes an exercise cost of about $3.5 billion.
