Shares of GameStop Corp (NYSE:GME) rose about 3.6% in premarket trading on Wednesday after the company disclosed a new compensation structure for Chairman and Chief Executive Officer Ryan Cohen, tying his pay entirely to ambitious growth and profitability targets.

The video game retailer said Cohen’s compensation is “100% at-risk,” with no fixed salary, cash bonuses or time-based equity awards. Instead, his remuneration will depend solely on the company meeting defined thresholds for market capitalization and earnings performance.

Under the plan, Cohen’s stock options will fully vest only if GameStop reaches a market capitalization of $100 billion and generates $10 billion in cumulative performance EBITDA. The award is structured in nine tranches of options covering 171,537,327 shares, with an exercise price of $20.66 per share. The first tranche would vest only if the company achieves a $20 billion market value and $2 billion in cumulative performance EBITDA.

GameStop pointed to Cohen’s record since he joined the board in January 2021, noting that the company’s market capitalization has increased by 615%, rising from roughly $1.3 billion to about $9.3 billion. Over the same period, selling, general and administrative expenses have been cut by 44.4%, while the business has swung from a net loss of $381.3 million in fiscal 2021 to net income of $421.8 million over the most recent trailing four quarters.

The proposed compensation package will require shareholder approval at a special meeting expected to be held in March or April 2026. GameStop said Cohen will recuse himself from voting on the plan.

GameStop stock price

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