GameStop has set up a high-stakes equity incentive plan for Chairman and CEO Ryan Cohen, linking his rewards to the company’s stock and profits reaching unprecedented levels. Cohen must hit a $100 billion market cap and $10 billion in earnings targets to receive any payout, with no partial credit for missing the mark.
If GameStop falls short of the $20 billion market cap and $2 billion earnings targets, Cohen will not receive any of the 171,537,327 stock options at $20.66 per share. Despite a 36% drop in shares last year and a $9.3 billion market cap, GameStop reported $77.1 million in net income in Q3.
Cohen, a key player in GameStop’s transformation, has expanded the company’s offerings to include collectibles, trading cards, and Bitcoin investments. The compensation plan aims to motivate Cohen by tying his rewards to achieving “extraordinary growth” and long-term shareholder returns, though the strategy for reaching these ambitious goals remains unclear.
Read more at CNBC: Ryan Cohen could be in for a big payday, but he has to grow meme darling GameStop to $100 billion
