GameStop Corp. announced that its board has granted CEO Ryan Cohen a performance‑based stock option award consisting of 171,537,327 options exercisable at $20.66 per share. The award is entirely at‑risk, with no guaranteed salary, cash bonus, or time‑based options, and is structured in nine tranches that vest only when the company reaches a $100 billion market‑capitalization target and $10 billion in cumulative performance EBITDA. The first tranche requires a $20 billion market cap and $2 billion in cumulative EBITDA, with each subsequent tranche raising the thresholds in a step‑wise fashion.
GameStop’s current market capitalization is roughly $9.3 billion, meaning the award’s full vesting would require a more than ten‑fold increase in company value. The board’s decision mirrors Elon Musk’s 10‑year incentive plan at Tesla, underscoring the high stakes and the expectation that Cohen will drive a substantial turnaround. Shareholders will need to approve the award at a special meeting scheduled for March or April 2026.
GameStop’s recent financial performance has been a mix of declining sales and improving margins. Net sales fell from $860.3 million in Q3 2024 to $821.0 million in Q3 2025, and from $1.283 billion in Q4 2024 to $1.194 billion in Q4 2025, reflecting a broader shift toward digital and online channels and intensified competition. Operating margins, however, rose from 5 % in Q3 2025 to 7 % in Q4 2025, driven by cost‑control initiatives and a more favorable product mix that increased the proportion of higher‑margin used‑game and digital‑content sales.
The award’s ambitious targets highlight the board’s confidence in Cohen’s ability to reverse the company’s trajectory. Analysts note that the $100 billion market‑cap goal is a “moonshot” relative to the current valuation, and the $10 billion EBITDA target represents a significant leap from the $2 billion cumulative EBITDA required for the first tranche. The at‑risk nature of the award signals that Cohen’s compensation will be fully contingent on achieving these milestones, aligning his incentives with long‑term shareholder value.
The market reacted positively to the announcement, with GameStop shares rising in pre‑market trading. Investors were drawn to the bold, high‑stakes incentive plan and the potential upside it offers if the company can execute a turnaround. The comparison to Tesla’s plan also added a narrative of transformational ambition that resonated with investors seeking high‑growth opportunities.
GameStop’s board’s decision reflects a strategic pivot toward aggressive growth and capital deployment. The company’s current challenges—declining retail sales, a shift to digital, and competitive pressure—are counterbalanced by the board’s belief that a focused strategy under Cohen can unlock significant value. The award’s structure, with incremental milestones tied to market cap and EBITDA, provides a clear roadmap for the company’s transformation and signals to investors that the board is willing to reward success at the highest level.
The award also underscores the importance of shareholder approval. The special meeting in March or April 2026 will determine whether the award is ratified, adding an additional layer of governance oversight to the compensation plan. If approved, the award will become a key component of GameStop’s long‑term incentive structure and could influence future executive compensation decisions.
GameStop’s CEO and CFO have emphasized the need for disciplined cost management and a renewed focus on digital and e‑commerce channels. While no direct quotes are available in the fact‑check, the board’s award signals that management is expected to accelerate the company’s transformation and deliver on the ambitious financial targets set for the next decade.
The award’s potential value of up to $35 billion is a projection based on the award’s full vesting at the $100 billion market‑cap target. It is not the intrinsic value of the options at the exercise price, which is substantially lower. The figure illustrates the magnitude of upside that could be realized if GameStop achieves the board’s high‑level goals.
GameStop’s board has positioned the award as a tool to align executive incentives with shareholder interests, while also setting a clear performance framework that will be closely monitored by investors and analysts alike. The award’s structure and the company’s current financial trajectory make it a significant event for stakeholders to watch in the coming months.
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