GameStop’s New Compensation Package for CEO Ryan Cohen
GameStop (NYSE: GME) announced a new compensation package for CEO Ryan Cohen, which will allow him to acquire up to 171,537,237 shares depending on the company’s performance. To earn any portion of the award, GameStop must achieve a market cap of $20 billion and $2 billion in cumulative EBITDA, which would more than double its current valuation of approximately $9.5 billion and significantly increase its earnings from $222 million over the past year.
The package is structured in tranches, with the ultimate goal requiring a market cap of $100 billion and $10 billion in cumulative EBITDA, translating to an 11-fold increase in stock price. This initiative traces a similar path to Elon Musk’s compensation structure at Tesla, aligning Cohen’s incentives with investor interests, though it comes with significant challenges as GameStop looks to revitalize its business model amidst declining revenue and increased competition in the gaming sector.
