Key Points

  • CEO Without Salary: Ryan Cohen takes the reins at GameStop with a groundbreaking decision—no CEO salary.
  • Activist Investor Impact: Cohen's activist investor role and 13% stake played a pivotal part in GameStop's rollercoaster.
  • Meme Stock Revival: GameStop, a central figure in the meme stock saga, witnessed a meteoric rise and subsequent decline.
  • Strategic Shift: Cohen's shift from an aggressive e-commerce focus to a nuanced strategy shows signs of paying off.
  • Leadership Challenges: GameStop grapples with executive departures and skepticism about the pace of transformation under Cohen.

In a surprising move, Ryan Cohen takes the helm at GameStop as CEO, opting for a salary of zero amid the retail giant's renaissance.

Cohen, previously GameStop's president, secured a 9% stake in the company in August 2020, later bolstering it to 13% by the end of the same year. His activist investor approach played a pivotal role in GameStop's tumultuous journey through the meme stock craze.

Challenges and Transformations

The stock's meteoric rise in late 2020, climaxing in January 2021, witnessed a retail investor revolt against hedge funds with significant short positions, leading to an infamous short squeeze. Yet, like many meme stocks, GameStop's soaring ascent proved short-lived, with substantial declines following its January peak.

Ryan Cohen has been instrumental in GameStop's recovery, pinpointing systemic issues and highlighting the lack of accountability among highly compensated executives. His critique prompted the resignation of GameStop's CFO, Diana Saadeh-Jajeh, in July 2022.

In a tweet, Cohenacknowledged the challenges GameStop faced and emphasized the need for a strategic overhaul. His initial push for an aggressive shift toward e-commerce, mirroring his success with Chewy, gave way to a more nuanced strategy. GameStop's quarterly earnings reflected some success in this approach, with strong demand for video games, collectibles, and consoles contributing to better-than-expected revenue.

Despite these positive signals, concerns linger among analysts regarding the pace of transformation under Cohen's leadership. His mixed record as an activist investor, including engagements with Bed Bath & Beyond and Nordstrom, has added a layer of skepticism.

GameStop, once synonymous with physical stores, has faced an exodus of executives in recent years, casting shadows on its leadership stability. Jenna Owens, the former chief operating officer, departed just seven months after joining, and the termination of former finance chief Michael Recupero last year added to the turbulence.

The company's shares, having shed more than 80% of their value since the 2021 record high, continue to grapple with challenges, marked by a 7% decline this year.

As Ryan Cohen takes the reins without a traditional CEO salary, the market watches closely for the unfolding chapters of GameStop's saga under this new leadership. Will Cohen's unconventional strategies prove to be the catalyst for a sustained revival, or will GameStop's challenges persist, making it a continued subject of both retail and Wall Street fascination? Only time will tell.



About GameStop Corp.


  • Ticker GME
  • Exchange NYSE
  • Sector Consumer Cyclical
  • Industry Specialty Retail
  • Shares Outstandng 304,529,984
  • Market Cap $3.17B
  • Description
  • GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-...
More about GME