"The video game retailer said in a regulatory filing on Wednesday that Cohen would have to grow its market capitalization to $100 billion and it would need to hit $10 billion in cumulative performance EBITDA - or earnings before interest, taxes, depreciation and amortization - for his award to fully vest. GameStop said Cohen won't receive any guaranteed pay, which it defines as no salary, no cash bonuses, and no stock that simply vests over time."
""His compensation is entirely 'at-risk,' meaning he will only be paid if the company achieves significant market and operational goals," GameStop said in the filing. "This structure ensures that Mr. Cohen's incentives are directly aligned with creating long-term value for GameStop's stockholders." The structure is similar to a pay package that Tesla shareholders approved for CEO Elon Musk, in which Musk would receive Tesla stock worth $1 trillion if he hits certain performance targets over the next decade."
Compensation requires growing market capitalization to $100 billion and achieving $10 billion in cumulative performance EBITDA for full vesting. No guaranteed pay is provided: no salary, no cash bonuses, and no stock that simply vests over time. Compensation is entirely at-risk and tied to significant market and operational goals to align incentives with long-term shareholder value. The package includes stock options to buy more than 171.5 million common shares at $20.66 each. Shareholder approval is required at a special meeting in March or April. The structure resembles Tesla’s performance-based CEO pay. Shares rose 4% to $21.49, valuing the company near $9.26 billion.
Read at Fast Company
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