GameStop shakes the markets in 2026: Cohen heads towards $35 billion with the revolutionary incentive plan

GME Returns to the List of Most Traded Stocks: What’s Happening

GameStop Corporation (NYSE: GME) has regained prominence in the first weeks of 2026, positioning itself once again among the most traded stocks on major markets. The renewed interest in the retail giant is not related to the speculative frenzy of 2021, but rather to a much more significant strategic move: the approval of an unprecedented compensation package for CEO Ryan Cohen.

The $35 Billion Compensation Plan: How It Works

Under Ryan Cohen’s leadership, GameStop has transformed its business model beyond the gaming sector, expanding into collectibles and trading cards. This diversification has yielded tangible results: from a net loss of $381.3 million in 2021, the company has achieved a net profit of $421.8 million over the last four quarters.

The Board of Directors has now approved an innovative performance-based compensation system for Cohen. Unlike most traditional plans, Cohen will not receive a salary, cash bonuses, or automatic stock awards. His compensation will depend solely on achieving ambitious growth and profitability targets.

If all objectives are met, Cohen will be granted options to purchase 171,537,327 GME shares at $20.66 per share. According to Reuters calculations, this compensation could reach $35 billion—a remarkable figure reflecting the leadership’s confidence in the company’s growth potential.

Milestones: Climbing Toward a $100 Billion Market Cap

The plan is structured in nine tranches, each with specific market capitalization and cumulative EBITDA targets:

To unlock the full reward, GameStop must reach a market capitalization of $100 billion along with $10 billion in cumulative EBITDA. Currently, the company’s market value stands at $9.3 billion, representing a 615% increase since Cohen joined the board in 2020.

Cohen’s Crucial Role in GameStop’s Rise

Since revealing a 9% stake in 2020 and subsequently taking on the role of CEO in September 2023, Cohen has redefined the narrative around GameStop. The company has demonstrated adaptability to the evolving market, expanding revenues beyond traditional video game retail into high-margin collectibles categories.

The market has recognized these efforts: GME stock has fallen less than the index during general turbulence, consolidating as one of the most traded stocks during volatile periods. The structure of the new compensation plan ensures perfect alignment between Cohen’s incentives and the interests of long-term shareholders.

Store Closures and Retail Network Optimization

Alongside strategic renewal, GameStop is proceeding with significant rationalization of its store network. In 2025, 590 U.S. stores were closed as part of a “portfolio optimization review.” SEC filings indicate that further closures will continue during the 2025-2026 fiscal year.

In January 2026, another 223 stores were confirmed to close, with direct communication to customers emphasizing the transition toward a leaner, more focused retail model. This strategy reflects Cohen’s commitment to operational efficiency and financial sustainability.

Market Performance and Outlook

Last Wednesday, GameStop shares rose 4.7%, closing at $21.63 within a 52-week range of $19.93 to $35.81. Despite the recent increase, the stock has fallen 35.2% over the past year, reflecting macroeconomic uncertainties and the company’s business transition.

Cohen’s compensation plan remains subject to shareholder approval, with a special vote scheduled for March or April 2026. Cohen will abstain from voting on the proposal, ensuring transparency in the decision-making process.