GameStop's Bold Move: CEO Compensation Tied Entirely to $100B Valuation Goal

GameStop has just pulled the trigger on an unconventional executive pay model—and it’s making waves. In a fresh regulatory filing, the company laid out a compensation structure for CEO Ryan Cohen that’s about as risky as it gets: absolutely zero fixed salary, no cash bonuses, and no time-vested equity. Every single dollar Cohen stands to earn hinges on the company hitting two massive targets.

The Stakes: $100 Billion Valuation and $10 Billion EBITDA

The math is straightforward but audacious. GameStop’s leadership is betting that Cohen will push the company to achieve a market capitalization of $100 billion while simultaneously generating $10 billion in cumulative EBITDA (earnings before interest, taxes, depreciation, and amortization). Until those goals are crossed, Cohen gets nothing.

“His entire compensation package is performance-based, meaning Mr. Cohen only realizes returns if GameStop achieves substantial operational and market milestones,” the company stated in its filing. “This creates complete alignment between the CEO’s personal financial interests and shareholder value creation.”

The proposed compensation includes over 171.5 million stock options priced at $20.66 per share. Shareholders will cast their votes on this arrangement at a special meeting scheduled for March or April.

Market Reacts: Stock Surges on CEO Pay Announcement

The market didn’t wait around to ponder this arrangement. Following the news, GameStop’s stock price jumped more than 4%, closing at $21.60 in premarket trading. That bump lifted the company’s market cap to roughly $9.26 billion—still a far cry from the $100 billion target, but a notable signal that investors are intrigued by the bold compensation structure.

For context, this approach echoes the controversial pay deal Tesla shareholders approved for CEO Elon Musk, which could theoretically hand him stock worth up to $1 trillion if he hits specific performance benchmarks over the coming decade. GameStop is essentially doubling down on performance-based incentives as a way to drive CEO focus.

The Keith Gill Factor: How a Meme Stock Legend Influences Today’s Sentiment

It’s worth remembering where GameStop was not long ago. In May 2024, well-known investor Keith Gill—the figure behind the legendary “Roaring Kitty” persona—resurfaced online for the first time in three years to publicly back the company. That appearance was significant; Gill was instrumental in igniting the entire “meme stock” craze back in early 2021, a period when GameStop shares skyrocketed past $120 per share.

The fact that Keith Gill’s renewed support came just months before this CEO pay announcement adds another layer to the narrative. Whether it’s coincidental or part of a broader strategic shift, the timing underscores just how closely watched GameStop remains by both retail and institutional investors alike.

Despite today’s gains, GameStop’s current valuation sits well below its historical peaks, keeping the company’s turnaround story firmly in play—and making Cohen’s incentive-laden compensation package all the more intriguing for anyone betting on a comeback.