GameStop said in a regulatory filing that CEO Ryan Cohen’s compensation package would have no guaranteed pay and would be structured so that he is paid only if the company reaches specified performance goals.
In the filing, GameStop said Cohen would have to grow its market capitalization to $100 billion and reach $10 billion in cumulative performance EBITDA—defined as earnings before interest, taxes, depreciation and amortization—for the award to fully vest. The company said it was providing details on the new package in a submission dated Wednesday.
GameStop said Cohen would not receive any guaranteed pay, defining guaranteed pay as no salary, no cash bonuses, and no stock that simply vests over time. The company said his compensation is entirely “at-risk,” meaning it will be paid only if GameStop achieves “significant” market and operational goals.
GameStop also said the structure ensures Cohen’s incentives are directly aligned with creating long-term value for GameStop’s stockholders. “His compensation is entirely ‘at-risk,’ meaning he will only be paid if the company achieves significant market and operational goals,” the company said in the filing. “This structure ensures that Mr. Cohen’s incentives are directly aligned with creating long-term value for GameStop’s stockholders.”
The package includes stock options that would allow Cohen to buy more than 171.5 million common shares for $20.66 each. GameStop said the pay plan would require shareholder approval at a special meeting scheduled for March or April.
AP reported that the compensation structure is similar to a package approved by Tesla shareholders for CEO Elon Musk, in which Musk would receive Tesla stock worth $1 trillion if he hits certain performance targets over the next decade.
AP said GameStop shares rose 4% to $21.49 in midday trading, valuing the company at roughly $9.26 billion. The article said the stock was down substantially from May 2024, when influential investor Keith Gill, known as “Roaring Kitty,” reappeared online for the first time in three years to declare his support for GameStop.
AP also reported that Gill helped ignite a “meme” stock craze in early 2021, when GameStop’s stock price rose above $120.