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GameStop CEO's Pay Tied to 10X Market Value
7 Jan
Summary
- CEO Ryan Cohen's compensation hinges on tenfold market value increase.
- Compensation package includes options for over 171.5 million shares.
- Cohen's pay is entirely at-risk, with no guaranteed salary or bonuses.
GameStop has unveiled a significant compensation package for CEO Ryan Cohen, potentially valued at $3.54 billion. This ambitious plan is directly tied to Cohen's ability to engineer a dramatic turnaround for the struggling videogame retailer. His performance will be measured by substantial increases in both market value and profits, reflecting a strong emphasis on results-driven compensation.
The proposed package consists of stock options, allowing Cohen to purchase over 171.5 million shares at $20.66 per share. Notably, his compensation is entirely "at-risk," meaning he will receive no guaranteed salary, cash bonuses, or stock options. This structure places the entirety of his potential earnings on the achievement of aggressive performance targets, mirroring incentive plans seen at other major tech companies.
This performance-based model requires Cohen to elevate GameStop's market capitalization more than tenfold from its current $9.26 billion. The company's success hinges on his leadership to significantly boost profits and overall market valuation, making his financial reward directly proportional to the company's revival.
