Core Viewpoint - The article suggests that Ryan Cohen, as CEO of GameStop Corp. (GME), is strategically positioning the company for long-term success, rather than focusing solely on short- to medium-term market trends [1]. Group 1: Company Strategy - Ryan Cohen is perceived to be playing a long-term strategic game with GameStop, indicating a focus on future growth rather than immediate market reactions [1]. Group 2: Market Perception - The market continues to view GameStop through a short- to medium-term lens, which may overlook the potential long-term strategies being implemented by the company's leadership [1].

Core Viewpoint - GameStop Corp.'s CEO Ryan Cohen is perceived to be strategically positioning the company for long-term success, rather than focusing solely on short- to medium-term market trends [1] Group 1: Company Strategy - Ryan Cohen is likened to a chess player, indicating a calculated and strategic approach to managing GameStop [1] Group 2: Market Perception - The market continues to view GameStop through a short- to medium-term lens, which may overlook the potential long-term strategies being implemented by the company [1]

Core Viewpoint - GameStop's stock price is experiencing a significant increase following the announcement that CEO Ryan Cohen will tie his salary to the company's stock performance [1] Company Summary - Ryan Cohen, the CEO of GameStop, has agreed to link his salary directly to the performance of the company's stock price [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - GameStop Corporation is gaining market attention again, driven by its evolving business strategy and leadership changes, particularly under CEO Ryan Cohen [1] Group 1: Leadership and Compensation - GameStop has diversified its business beyond video games, with growth in collectibles and trading cards, positively impacting financial performance [2] - CEO Ryan Cohen, who holds a 9% stake in the company, has been pivotal in increasing interest in GameStop since his involvement began in August 2020 [3] - A new compensation plan for Cohen has been announced, which includes stock options that will vest based on achieving specific market capitalization and EBITDA milestones [4][5] - The compensation plan could potentially reward Cohen with stock options to purchase 171,537,327 shares at a price of $20.66, contingent on meeting defined performance targets [5][6] Group 2: Financial Performance - Since Cohen joined the Board, GameStop's market capitalization has surged from $1.3 billion to $9.3 billion, reflecting a 615% increase [6] - The company has transitioned from a net loss of $381.3 million in fiscal 2021 to a net income of $421.8 million over the last four fiscal quarters, indicating significant financial improvement [6] Group 3: Store Closures - GameStop is closing hundreds of stores as part of its turnaround strategy, with reports indicating 590 U.S. stores were closed in the last fiscal year [8] - An additional significant number of store closures is expected during the 2025 fiscal year, which ends on January 31, 2026 [8] - As of January 2026, 223 stores have been confirmed closed, with notifications sent to customers regarding the closures [9][10] Group 4: Stock Performance - GameStop's stock has seen a 4.7% increase to $21.63 recently, although it remains down 35.2% over the past year [11]

Core Viewpoint - GameStop has introduced a compensation package valued at approximately $35 billion for CEO Ryan Cohen, contingent on achieving significant growth in market value and profitability [1][4][8] Company Performance - GameStop's annual revenue has decreased by over 35% since 2022, and its stock price has fallen by 80% from the all-time highs reached in 2021 [2][7] - The current market capitalization of GameStop stands at $9.26 billion, a stark contrast to the peak of about $34 billion during the 2021 meme stock rally [5][8] CEO Compensation Package - The new pay plan for Ryan Cohen includes ambitious targets, requiring the market capitalization to reach $100 billion and cumulative performance EBITDA to hit $10 billion [4][11] - Cohen's compensation is entirely performance-based, consisting of stock options for over 171.5 million shares at a price of $20.66 per share, with no guaranteed salary or cash bonuses [7][11] - The compensation package is structured in nine tranches, each linked to specific performance goals [11] Shareholder Involvement - GameStop's board has reached an agreement with Cohen regarding the compensation package, which will require shareholder approval at a special meeting anticipated in March or April [12]

Group 1 - The proposal eliminates all guaranteed pay for CEO Ryan Cohen [1] - The target market capitalization is set at $100 billion [1]

Core Viewpoint - GameStop has implemented a performance-based equity incentive plan for CEO Ryan Cohen, which is contingent on achieving significant growth in market capitalization and cumulative earnings [1][2]. Group 1: Incentive Structure - The plan grants Cohen stock options that will only vest if GameStop reaches a market capitalization of $100 billion and $10 billion in cumulative EBITDA [1]. - There is no partial credit; if the company does not meet at least $20 billion in market capitalization and $2 billion in cumulative EBITDA, none of the options will vest [2]. - The total award for Cohen could amount to stock options for 171,537,327 shares at a price of $20.66 per share if the targets are met [3]. Group 2: Company Performance - GameStop's shares fell by 36% last year, and the current market capitalization stands at $9.3 billion [2]. - The company reported a net income of $77.1 million in the third quarter [2]. Group 3: Business Strategy - GameStop is diversifying its business beyond physical video game sales, including ventures into collectibles, trading cards, and aggressive bitcoin purchases [4]. - However, there is a lack of a clear master plan on how these initiatives will achieve the growth necessary to meet the compensation targets [4]. Group 4: Alignment of Interests - The compensation structure aims to align Cohen's incentives with long-term shareholder returns by linking his pay to what GameStop describes as "extraordinary growth" [5].

Core Viewpoint - GameStop is implementing a new performance-based compensation package for CEO Ryan Cohen, which is contingent on achieving significant market and operational goals Group 1: Compensation Structure - Cohen's compensation is entirely "at-risk," meaning he will not receive guaranteed pay, salary, cash bonuses, or stock that vests over time [2] - The package requires GameStop to grow its market capitalization to $100 billion and achieve $10 billion in cumulative performance EBITDA for Cohen's award to fully vest [1] - This compensation structure is designed to align Cohen's incentives with the long-term value creation for GameStop's shareholders [2] Group 2: Stock Options and Market Reaction - The compensation package includes stock options allowing Cohen to purchase over 171.5 million common shares at $20.66 each [3] - GameStop's shares rose more than 4% to $21.60 before the market opened, resulting in a market capitalization of approximately $9.26 billion [3] Group 3: Historical Context - GameStop's shares have significantly declined since May 2024, when investor Keith Gill, known as "Roaring Kitty," publicly supported the company [4] - Gill's endorsement was pivotal in the "meme" stock phenomenon that saw GameStop's stock price exceed $120 in early 2021 [4]

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. ...