GameStop Unveils Radical $35 Billion ‘All-or-Nothing’ Pay Plan for CEO Ryan Cohen
By Cygnus | 07 Jan 2026
GameStop Corp. has announced one of the most ambitious executive compensation packages in corporate history, unveiling a performance-based stock option plan for CEO Ryan Cohen that could be worth up to $35 billion—but only if he delivers a “moonshot” transformation of the video game retailer.
In a regulatory filing released early Wednesday, the company detailed a structure that offers Cohen zero guaranteed salary, zero cash bonuses, and no time-vested equity. Instead, the entire award is contingent on extreme growth targets.
To unlock the full payout, Cohen must steer GameStop from its current market capitalization of approximately $9.3 billion to a staggering $100 billion valuation. Additionally, the company must generate a cumulative EBITDA of $10 billion during the performance period.
A Tesla-style gamble
The structure draws direct comparisons to Elon Musk’s 2018 compensation plan at Tesla, which was similarly criticized as impossible before ultimately paying out billions.
For GameStop, the plan signals a definitive pivot from its identity as a volatile “meme stock” to a fundamental business turnaround story. Since Cohen took the helm, the company has slashed SG&A expenses by over 44% and swung from deep losses to a net income of $421.8 million over the last four quarters.
Market reaction
Wall Street remains divided. Retail investors, who have long championed Cohen, pushed GameStop (GME) shares up 3% in premarket trading on Wednesday. However, institutional analysts caution that a $100 billion valuation would require GameStop to reinvent itself as a dominant digital platform or tech holding company, a feat far beyond simply selling physical discs and consoles.
“Ryan Cohen is betting on himself,” noted one market strategist. “If he fails, he gets paid nothing. If he succeeds, shareholders see a 10x return. It is the ultimate alignment of interest.”
Summary
GameStop has proposed a $35 billion stock option package for CEO Ryan Cohen, contingent on the company reaching a $100 billion market cap and $10 billion in profit. Cohen will receive no salary or cash bonuses. The “all-or-nothing” deal mirrors Elon Musk’s famous Tesla pay package and signals GameStop’s aggressive ambition to transform beyond retail.
Frequently Asked Questions (FAQs)
Q1: What is the new pay deal?
Ryan Cohen will receive stock options worth up to $35 billion, but only if GameStop’s stock price rises enough to make the company worth $100 billion (it is currently worth approximately $9 billion).
Q2: Does he get a salary?
No. Cohen receives $0 in salary, $0 in cash bonuses, and $0 in guaranteed stock. If the stock price doesn’t go up dramatically, he works for free.
Q3: Is this realistic?
It is highly ambitious. A $100 billion valuation would make GameStop larger than companies like Sony or Dell. It requires a massive business transformation, likely into digital gaming, investments, or e-commerce.
Q4: Is GameStop making money now?
Yes. Under Cohen’s leadership, GameStop has become profitable, reporting a net income of $421 million over the last year by cutting costs and closing underperforming stores.
Q5: How did the stock market react?
Shares rose 3% in premarket trading. Retail investors (the “Apes”) view this as a sign of confidence that Cohen has a major growth plan up his sleeve.
