New York, Jan 8, 2026, 08:12 (EST) — Premarket
- GameStop shares were up about 3% before the open after disclosing a long-term, performance-based CEO option award
- The package ties payouts to a $20 billion–$100 billion market-cap climb and cumulative EBITDA targets
- Investors are watching for the proxy filing, the spring vote, and the next earnings report date
GameStop Corp (GME) shares rose 3.1% to $21.29 in premarket trading on Thursday after the company laid out a long-term pay package for CEO Ryan Cohen that could run to about $35 billion if the top targets are met. The award hinges on GameStop lifting its market value to $100 billion and producing $10 billion in cumulative performance EBITDA, a measure of operating profit before interest, taxes and some non-cash costs. 1
Why it matters now is the signal. GameStop is still trying to sell investors on a turnaround in a business hurt by the shift to online game downloads, and a headline-grabbing incentive plan puts management’s claims back on the table.
It also pulls the debate away from a single quarter. The plan forces a longer-dated argument about what GameStop’s business model is meant to be, and whether shareholders want Cohen locked in with a payout tied to extreme growth.
In an SEC filing, GameStop said the award totals options to buy 171,537,327 Class A shares at $20.66 each, split into nine tranches that vest only if the company clears both market-cap and “cumulative performance EBITDA” hurdles. The first tranche requires a $20 billion market capitalization and $2.0 billion in cumulative performance EBITDA, stepping up to $100 billion and $10 billion at the top; if GameStop does not meet the minimum hurdles, no options vest. 2
The company said it plans to file a proxy statement and furnish it to shareholders ahead of a special meeting to vote on the award. The filing also warned that directors and executives could be deemed participants in the proxy solicitation tied to that vote. 3
GameStop described the compensation as entirely “at-risk,” with no salary, cash bonuses or time-vested stock for Cohen under the package. The structure is similar to a performance-based plan Tesla shareholders approved for CEO Elon Musk. 4
For traders, the fine print may matter as much as the headline number. The option stack is big enough to raise dilution questions if it ever vests, while the market-cap targets push the focus to what could realistically re-rate the stock.
The next scheduled checkpoint is earnings: Wall Street Horizon’s calendar lists GameStop’s next report as March 24 after market close, though it flags the date as unconfirmed. Investors will be looking for any operational updates that sharpen (or muddy) the path to the targets in the award. 5
But the deal cuts both ways. If the turnaround stalls or shareholders reject the award, the plan could end up as a short-lived catalyst, and the stock could give back the latest gains.
