GameStop said its board has approved Chairman and CEO Ryan Cohen’s request to cancel the performance bonus approved for him in January, a package that could have been worth as much as $35 billion. The company said the move is meant to sharpen management’s focus on operating performance and on the planned acquisition of eBay.
The cancelled award would have been payable only if GameStop’s market value rose more than tenfold and profitability expanded sharply. GameStop said the decision reflects Cohen’s view that management should now be fully focused on day-to-day execution and the pending deal.
Cohen first proposed the eBay transaction in May, offering about $56 billion in cash and stock. The stated aim, according to reports, was to position eBay as a stronger rival to Amazon. eBay’s board rejected the bid, calling it “not credible” and unattractive.
GameStop said it will publish additional materials next week explaining the strategic logic and operating plan for any combined business if the acquisition goes ahead. Wall Street continues to question how Cohen would fund a deal for a company roughly five times larger than GameStop, with bankers and lawyers pointing to unresolved financing questions. Cohen joined GameStop’s board in January 2021 and became CEO in September 2023, leading a return to profitability through aggressive cost cuts, including closing hundreds of stores. Earlier this month, GameStop reported a 14% rise in quarterly revenue, helped by strong demand for collectibles, and its board also authorized a $2 billion share buyback. For the quarter ended May 2, net sales reached $835.3 million, up from $732.4 million a year earlier.
