Ryan Cohen, GameStop’s CEO, stands to earn billions through a new performance award plan. GameStop will grant him stock options for over $3.5 billion, with the potential to earn over $35 billion if specific financial goals are met. Cohen’s incentive is tied to EBITDA and market cap thresholds, with shareholder approval pending.

GameStop has seen improvements in its financials under Cohen’s leadership, with a focus on its collectibles business boosting revenue. However, the software and hardware sales are still struggling. GameStop’s stock is trading at a high multiple compared to its earnings, making it a risky investment despite recent operational improvements.

Investors should consider GameStop’s future potential carefully, as the CEO’s incentive plan hinges on significant financial milestones. While Cohen has shown promise in revitalizing the company, the stock’s valuation may not align with its current operational challenges. It’s essential to weigh the risks and rewards before investing in GameStop.

Read more at Yahoo Finance: GameStop CEO Ryan Cohen Has $35 Billion Reasons to 10x the Stock. Should Investors Buy In?