GameStop CEO Gets No Salary Unless Stock Hits $100 Billion

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•  07 Jan 2026
 

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$GME GameStop CEO Ryan Cohen just announced a compensation plan that answers the question many investors have been asking: is he truly committed to turning this company around? The answer comes in the form of a pay package where he earns absolutely nothing unless GameStop achieves what many consider nearly impossible targets.

Ryan Cohen compensation plan contains no base salary, no cash bonuses, and no guaranteed stock awards. Instead, Cohen will receive options to purchase 171.5 million GameStop shares at $20.66 per share, but only if the company reaches a $100 billion market capitalization and generates $10 billion in cumulative EBITDA. GameStop shareholders will vote on this proposal in March or April 2026.

The stock jumped 4.7% to $21.64 following the announcement, suggesting investors view this alignment of interests favorably. However, GameStop current market cap sits far below the targets Cohen must achieve to earn any compensation.

The compensation plan operates in performance tiers that require specific milestones before any options vest. Cohen receives nothing if GameStop fails to reach at least $20 billion in market value or $2 billion in cumulative EBITDA. This represents the minimum threshold for any compensation whatsoever.

Beyond that first tier, the plan scales upward with additional milestones, culminating in the full option grant only when GameStop hits the $100 billion market cap and $10 billion EBITDA targets. The company has not disclosed a specific timeframe for achieving these goals, meaning Cohen could potentially work for years without receiving any direct compensation from GameStop.

This structure fundamentally differs from traditional executive pay packages that guarantee base salaries ranging from hundreds of thousands to millions of dollars annually, plus performance bonuses and equity grants that vest over time regardless of company performance.

GameStop shares declined approximately 36% during 2025, reflecting several challenges facing the company. The core video game retail business continues struggling as consumers increasingly purchase games digitally rather than from physical stores. GameStop attempt to pivot into cryptocurrency by adding Bitcoin ($BTCUSD) to its balance sheet failed to generate the investor enthusiasm management anticipated.

The broader decline in meme stock momentum since the 2021 surge has also weighed on GameStop valuation. Retail investors who drove the stock to unprecedented levels have largely moved on to other opportunities, leaving GameStop to compete on business fundamentals rather than social media hype.

Despite these headwinds, GameStop has shown meaningful operational improvement. The company is on track for its third consecutive year of positive EBITDA, with the first three quarters of fiscal 2026 producing $136.4 million in adjusted earnings. This marks GameStop strongest operational performance since 2020, though it remains far from the $2 billion minimum EBITDA target required for Cohen compensation to begin vesting.

The GameStop compensation structure closely mirrors the performance-based pay model Elon Musk uses at Tesla ($TSLA). Musk Tesla compensation package, which shareholders approved despite its theoretical trillion-dollar value, also eliminates traditional salary and bonuses in favor of options that only vest when the company achieves specific market cap and operational milestones.

Both structures appeal to retail investor communities because they demonstrate CEO confidence and align executive interests directly with shareholder returns. When CEOs forego guaranteed pay, it signals they believe strongly enough in the potential to bet their personal wealth on its success.

The critical difference lies in company trajectory. Tesla had already proven its ability to manufacture vehicles at scale, achieve sustained profitability, and dominate the electric vehicle market when Musk latest pay package was approved. GameStop must still prove it can successfully transform from a struggling brick-and-mortar retailer into whatever Cohen envisions as its future business model.

Reaching $100 billion would require GameStop to increase its market value roughly fourfold from current levels. For context, this would place GameStop valuation above major established companies and would require either explosive revenue growth, massive profit margin expansion, or a combination of both.

GameStop current revenue base comes primarily from video game hardware, software, and collectibles sold through retail locations and e-commerce. The company has explored various transformation strategies including blockchain initiatives, expanded e-commerce capabilities, and cryptocurrency holdings, but none have yet produced breakthrough results that would support such a dramatic valuation increase.

The targets are ambitious by design. Cohen and the GameStop board constructed this compensation plan to ensure the CEO only gets paid if shareholders experience extraordinary returns on their investment. Whether these targets represent achievable goals or aspirational benchmarks remains the central question facing investors.

The immediate market reaction was positive, with the stock rising following the announcement. This suggests investors interpret Cohen willingness to work without guaranteed pay as a strong vote of confidence in GameStop transformation potential. Retail investors who have supported GameStop through volatile periods may view this as validation that leadership remains committed to creating long-term value.

However, investor opinions will likely evolve based on Cohen ability to articulate a credible path toward those ambitious targets. The shareholder vote scheduled for March or April 2026 will provide the first real test of whether investors believe in this vision enough to approve the compensation structure.

Some investors question whether the targets are realistic at all, or whether this represents an attempt to restore confidence after a difficult year without actually changing the fundamental challenges facing the business. The lack of a defined timeframe adds uncertainty, as Cohen could theoretically take many years to pursue these goals while shareholders wait for clarity on strategic direction.

The compensation announcement creates a clear framework for measuring Cohen performance, which may reduce uncertainty around leadership effectiveness. If GameStop announces major partnerships, strategic acquisitions, or business pivots that credibly advance progress toward the stated targets, the stock could experience significant upward movement as investors price in improved probability of success.

Conversely, if quarterly results continue showing only modest operational improvements without the exponential growth trajectory needed to reach these milestones, investor patience may diminish. The market will likely scrutinize each earnings report and strategic announcement for evidence that GameStop is building momentum toward the compensation targets.

The coming months will likely bring more details about Cohen strategic roadmap for achieving these ambitious targets. Investors should pay attention to several key areas that could indicate whether GameStop is making real progress or simply maintaining its current trajectory.

GameStop remains one of the most polarizing stocks in the market, with passionate supporters believing in Cohen ability to engineer a turnaround and skeptics questioning whether the fundamental business model can support the valuations retail investors envision. This compensation structure at least provides clear metrics for measuring success or failure rather than subjective assessments of progress.

If you're trying to decide whether GameStop represents a compelling opportunity at current prices, understanding the full context of the operational performance, competitive positioning, and strategic options might help clarify whether Cohen ambitious compensation targets reflect achievable goals or aspirational thinking.

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