GameStop’s Ambitious Growth Plan Under New CEO Ryan Cohen
GameStop has unveiled a groundbreaking performance-based compensation package for CEO Ryan Cohen, designed to revolutionize the company and deliver massive returns for shareholders. The announcement has already started to impact the market, with GameStop’s shares jumping 4.43% after the reveal.
Breaking Down Ryan Cohen’s Compensation Package
Cohen’s new pay structure is unlike conventional ones. It strictly ties his compensation to hitting enormous business growth milestones. His performance targets include increasing GameStop’s market capitalization from $9.3 billion to $100 billion—a staggering 1,000% increase—and achieving $10 billion in cumulative performance EBITDA.
The plan grants Cohen stock options to purchase 171,537,327 shares at $20.66 per share, split across nine tranches of awards. Achieving smaller milestones, such as doubling the current market cap to $20 billion or reaching $2 billion in cumulative EBITDA, unlocks partial compensation. However, should Cohen miss these targets, he will receive nothing—no salary, bonuses, or time-vested stock compensation are part of this deal.
A Page Out of Tesla’s Playbook
This bold strategy closely mirrors the compensation model of Tesla CEO Elon Musk, whose pay package tied to strict performance goals has been worth up to $1 trillion as Tesla reached new heights. Just as with Musk, Cohen’s compensation ensures his interests align directly with shareholder value creation.
GameStop’s board crafted the plan, excluding Cohen from the discussions in keeping with best governance practices. Shareholders will vote on this package during a special meeting scheduled for March or April 2026. Despite his significant stake of 8.3% in GameStop, Cohen has recused himself from the vote, allowing other shareholders to decide.
GameStop’s Transformational Progress
Since Ryan Cohen joined the board in 2021, GameStop has undergone impressive changes. Under his leadership, the company has reduced selling, general, and administrative expenses by 44.4%, driving net income from a $381.3 million loss in fiscal year 2021 to $421.8 million in net income for the recent trailing four quarters.
GameStop’s market cap has risen 615% during Cohen’s tenure, growing from $1.3 billion to $9.3 billion. This compensation plan aims to sustain this transformative growth trajectory.
Investor Implications and Market Reaction
Investors reacted swiftly to the news, driving the stock up in premarket trading. While GameStop has faced challenges, including a 38% drop in share prices over the past year, this pay structure signals a renewed focus on long-term value creation and growth.
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