"GameStop announced this week that a proposed pay package worth approximately $35 billion for its CEO, Ryan Cohen, was in the works. The compensation is tied entirely to the company's performance and depends on a major turnaround. To earn it, Cohen must increase GameStop's market value by more than 10 times and significantly raise profits. Meeting these goals would require a big change for GameStop, which has struggled in recent years."
"Under the new plan, Cohen must help grow GameStop's market value to $100 billion and deliver $10 billion in cumulative performance EBITDA--earnings before interest, taxes, depreciation, and amortization--a common measure of operating profit. GameStop's current market value is about $9.26 billion. The company previously reached a peak market value of around $34 billion during the 2021 rally. Cohen will not receive a salary, cash bonuses, or traditional stock awards under the plan."
GameStop proposed a performance-based pay package for CEO Ryan Cohen worth approximately $35 billion tied entirely to company performance and a major turnaround. To earn the package, Cohen must increase GameStop's market value to $100 billion and deliver $10 billion in cumulative performance EBITDA. GameStop's current market value is about $9.26 billion and previously peaked near $34 billion during the 2021 rally. Cohen will receive no salary, cash bonuses, or traditional stock awards; compensation would come from stock options to purchase shares. Shareholders are expected to vote on the package at a special meeting in March or April.
#executive-compensation #performance-based-stock-options #market-valuation-targets #gamestop-turnaround
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