GameStop just announced a new stock option award for its CEO, and it’s not your usual compensation package.
The options only vest if GameStop hits a $100 billion market capitalization, setting an extremely aggressive long term target. For context, GME’s current valuation is far below that level, meaning this is a high risk, high reward bet on a major transformation.
Some see this as strong alignment with shareholders, pushing leadership to focus on long term value creation. Others argue it’s overly optimistic given GameStop’s current fundamentals and competitive pressure.
Is this a bold incentive structure or unrealistic ambition? Curious to hear how others are reading this move.
GameStop CEO Pay Now Tied to a $100B Market Cap
byu/Maleficent-Age-1404 instocks
Posted by Maleficent-Age-1404
5 Comments
Let’s see how long it takes for the shills to flood the comments lol. These things don’t happen if there is no realistic plan to achieve it
By the way, it’s not high risk with the balance sheet they have
GS just announced this month the closure of 100-150 physical locations.
And they are stepping into gambling with their power packs.
Take a small peak into the Pokémon card scene right now and you’ll see a ton of people dumping money toward GS.
Interesting to see whether GameStop can actually deliver proof that this kind of target is achievable, or if it turns out to be more of a headline driven publicity move than a credible longterm plan.
How is market cap relevant for shareholders? Number of diluted shares increased 30% in the last 12 months. He could achieve the first $20B market cap milestone next week if he starts selling shares ATM.
Compensation should be based on price per share, not market cap. A higher market cap is useless if shareholders own less and less of the company.
Imagine how much gains the bag holders have missed out on over the last 4 years lol.