GameStop CEO Ryan Cohen would see a huge stock-options package if he can grow the company's market cap by about 1,000% and hit new profit targets. ...

Core Viewpoint - GameStop's CEO Ryan Cohen may transition to a performance-based compensation plan, contingent on shareholder approval, which would eliminate guaranteed pay and link his earnings solely to the company's performance metrics [1][3]. Compensation Plan Details - The proposed stock options require GameStop to achieve a $100 billion market capitalization and $10 billion in cumulative performance EBITDA for full vesting, distributed in nine tranches based on milestone achievements [2]. - The first milestone stipulates that if GameStop does not reach a $20 billion market cap and $2 billion in cumulative performance EBITDA, no options will vest [2]. Financial Performance - Since Cohen joined the board, GameStop's market capitalization has increased from approximately $1.3 billion to about $9.3 billion, reflecting a 615% growth [5]. - The company's total selling, general, and administrative expenses decreased by over 44%, from $1.7 billion in fiscal year 2021 to $950.8 million in the most recent four fiscal quarters [5]. - GameStop has transitioned from a net loss of $381.3 million to a net income of $421.8 million [5]. Board and Shareholder Actions - The board has approved the stock option plan, designed to incentivize Cohen for extraordinary growth, with Cohen recusing himself from the decision-making process and the upcoming shareholder vote [6]. - The shareholder vote is anticipated to occur in March or April [6]. Comparison to Other Compensation Structures - The compensation setup is likened to Elon Musk's compensation plan at Tesla, with potential earnings for Cohen estimated at $35 billion, although the performance targets are considered ambitious [7].

游戏驿站(GME.N)盘前涨4%，公司宣布授予CEO瑞安·科恩长期绩效奖励。 本文源自：金融界AI电报 ...

格隆汇1月7日｜游戏驿站(GME.US)盘前涨4%。消息面上，游戏驿站宣布授予CEO瑞安·科恩长期绩效奖 励。奖励包含可购买1.715亿股公司股票的期权，首期期权授予条件为公司市值达到200亿美元，整体方 案旨在激励管理层推动公司市值向1000亿美元目标增长。 ...

Core Viewpoint - GameStop has granted a performance-based stock option award to CEO Ryan Cohen, which will only fully vest when the company's market value reaches $100 billion and the firm achieves $1 billion in revenue [1] Group 1 - The stock option award is contingent on significant growth in both market value and revenue [1] - The target market value of $100 billion represents a substantial increase from the company's current valuation [1] - Achieving $1 billion in revenue indicates a focus on scaling operations and improving financial performance [1]

Core Viewpoint - GameStop has introduced a performance-based compensation package for CEO Ryan Cohen, which requires a significant increase in the company's market value and profits to be realized [1][2]. Group 1: Compensation Structure - Cohen's compensation package does not include guaranteed salary, cash bonuses, or stock options, making it entirely contingent on achieving ambitious targets [2]. - The structure of Cohen's compensation is similar to the 10-year incentive plan for Elon Musk at Tesla, where rewards are tied to specific market capitalization and operating profit goals [2]. Group 2: Stock Options Details - The compensation package includes stock options allowing Cohen to purchase over 171.5 million shares at a price of $20.66 per share [4]. - GameStop's current market capitalization stands at $9.26 billion, indicating the scale of the targets Cohen must meet [4].

GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) ("GameStop†or the "Company†) today announced that its Board of Directors has granted a performance-based stock option award to Ryan Cohen, the Company's Chairman and Chief Executive Officer. The award is designed to incentivize Mr. Cohen to achieve extraordinary growth. In order for the award to fully vest, the Company's market capitalization would have to grow to $100 billion and the Company would need to achieve $10 billion in Cumulative Perf ...

Core Viewpoint - GameStop is closing stores in multiple states as part of its strategy to reduce costs and adapt to changing shopping habits [1] Group 1: Store Closures - GameStop has already closed 590 stores in the United States during the previous fiscal year as part of a "store portfolio optimization review" [1] - The retailer plans to close a "significant number of additional stores" during its 2025 fiscal year, which ends on January 31, 2026 [1]

Core Insights - The decline of physical video rental stores, exemplified by Blockbuster, is attributed to the rise of streaming services, which eliminated the need for in-store rentals [1] - Digital game sales have surged, accounting for over 75% of total video game revenue globally in 2023, a trend driven by faster internet speeds and cloud gaming [2] - GameStop's reliance on disc-based game sales is becoming increasingly unsustainable as fewer customers visit stores for physical copies [3] Company Overview - GameStop has been reducing its retail store portfolio since 2024, closing nearly half of its stores [7] - The company has a strong cash position and has returned to profitability, but sales continue to decline, raising questions about its long-term viability [4][5] - GameStop's hardware sales may recover, but software sales are expected to continue their downward trend [5] Store Closures and Optimization - GameStop closed 590 stores in the U.S. during fiscal 2024, along with additional closures in Europe, Australia, and Canada [13] - The company is conducting a comprehensive review of its store portfolio to identify locations for closure based on market conditions and performance [9] - By early 2025, GameStop's global store count had decreased to around 3,200 from a peak of over 6,000 in the mid-2010s [13] Analyst Perspectives - Analysts have mixed views on GameStop's future, with some believing the company is doomed due to declining physical software sales and a shift to digital [10] - Others highlight GameStop's effective cost-cutting measures and strong balance sheet as positive factors [11]

Economic Data Release - The week will begin with ISM Manufacturing PMI and ISM Manufacturing Prices data for December on Monday [2] - S&P Global Services PMI and ISM Non-Manufacturing PMI for December will be released on Tuesday [2] - JOLTS Job Openings for November and ADP Nonfarm Employment numbers for December are scheduled for Wednesday [2] - Initial Jobless Claims data will be released on Thursday [2] - Nonfarm Payrolls and unemployment numbers for December are due on Friday [2] Earnings Reports - Constellation Brands, Marks & Spencer, Albertsons, and Applied Digital will report their earnings on Wednesday [3][4] - Tesco PLC is set to report earnings on Thursday [4] Market Events - The CES conference in Las Vegas will focus on AI, robotics, digital health, and mobility, featuring keynote speeches from Nvidia CEO Jensen Huang [5] - IREN Limited and GameStop are expected to experience volatility based on options volume [4] - The analyst quiet period will expire for Lumexa, Wealthfront, JM Group, and Cardinal Infrastructure, allowing analysts to post ratings [4]