TITLE: GameStop CEO Could Ring In Big Payday But With An Even Bigger Caveat
GameStop recently revealed a truly monumental compensation plan aimed at CEO Ryan Cohen, potentially worth a staggering $35 billion. However, this isn’t free money; the entire package is entirely performance-driven. For Cohen to unlock this unprecedented payday, he must orchestrate an aggressive financial pivot, specifically boosting the company’s market capitalization more than tenfold and realizing a substantial increase in overall corporate profitability.
Achieving these benchmarks would mark an epic reversal of fortune for the struggling retailer. GameStop has been grappling with operational difficulties and declining sales for years, a challenge illustrated by plans to match its number of store closures even as far back as 2020. Furthermore, while the company enjoyed massive visibility during the 2021 meme-stock surge—a phenomenon that temporarily drove the stock to record highs—its share price has fallen dramatically since then. The proposed incentive structure is a clear signal that the board is betting heavily on Cohen’s ability to pull off a historic, company-defining turnaround in a challenging retail landscape.