GameStop has unveiled an unprecedented compensation plan worth up to $35bn for CEO Ryan Cohen. Entirely contingent on extraordinary performance, it would pay out only if the company's market capitalization climbs from $9.26bn to $100bn and if it generates $10bn in cumulative EBITDA. Struggling for several years, GameStop is banking on a radical transformation to reclaim its place in a market dominated by digital distribution.

The plan is based on a stock-option scheme structured into nine performance tranches. Cohen would receive no fixed salary and no guaranteed bonus, with his pay exclusively dependent on these ambitious targets. He could be granted up to 171.5 million shares at $20.66 each. If successful, the value of the package would reach $35bn, before subtracting the estimated $3.5bn exercise cost. The board has approved the plan, which will be put to shareholders' vote at an extraordinary meeting expected by April.

Inspired by Elon Musk's pay model at Tesla, the strategy reinforces Cohen's wager on a GameStop recovery. Named CEO in September 2023, after first joining the board in 2021, he launched a sweeping restructuring plan focused on cost savings and store closures. The market welcomed the announcement, with the stock rising over 5% on Wednesday. Already holding 8.3% of the company, Cohen could also benefit directly from a surge in its share price.