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yesterday

GameStop Sets $35 Billion Performance-Only Pay Plan for CEO Ryan Cohen

Shareholders will vote this spring on an all-options package that pays only if GameStop hits ambitious growth targets.

FILE - Pedestrians pass a GameStop store on 14th Street at Union Square, Thursday, Jan. 28, 2021, in the Manhattan borough of New York. (AP Photo/John Minchillo, File)
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Overview

  • The proposal requires lifting market capitalization to $100 billion and delivering $10 billion in cumulative performance EBITDA for full vesting.
  • The award comprises options to buy about 171.5 million shares at $20.66, divided into nine tranches that vest only upon meeting specified milestones.
  • GameStop said Cohen will receive no salary, no cash bonuses, and no time-vested stock, making the compensation entirely at risk.
  • The board agreed to the plan and will seek shareholder approval at a special meeting expected in March or April.
  • GameStop’s market value is about $9.26 billion after revenue fell more than 35% since 2022, and shares rose roughly 3% to 4% in premarket trading following the disclosure.