GameStop Bets Billions on CEO Ryan Cohen as it Closes 500 Stores

GameStop is closing nearly 500 stores by the end of January while asking shareholders to approve a high-risk, multi-billion dollar pay package for CEO Ryan Cohen. The all-stock award, which has no guaranteed salary, is tied to hitting audacious growth targets, a move that comes as the retailer accelerates its retreat from physical stores amid falling revenue.

• Betting the house: Cohen's 100% "at-risk" compensation is tied to increasing GameStop's market cap from $9.3 billion to $100 billion and achieving $10 billion in cumulative earnings. The award's fine print details nine vesting stages, and if the minimum goals aren't met, the entire package is worthless.

• Justifying the moonshot: The company is pointing to Cohen’s recent track record to justify the massive potential payout. During his tenure, GameStop swung from a net loss of nearly $400 million to a net income of over $420 million while cutting administrative expenses by more than 44%.

• The final hurdle: Developed with a third-party advisor, the plan now goes to a shareholder vote. Cohen will recuse himself, leaving the final decision on his high-stakes incentive plan entirely up to the company's investors.

The move crystallizes GameStop's strategy into a simple, high-stakes proposition: a massive physical consolidation to fund an unprecedented, leadership-driven bet on explosive growth. The fate of the company now rests on whether shareholders believe in Cohen's ability to deliver.