Just three months after joining GameStop’s board, Ryan Cohen, the billionaire investor trying to turn around and restructure the struggling brick-and-mortar company, was asked to lead the board. of the company, once again fueling the optimism of investors who have plowed. in stock at unprecedented levels.
GameStop on Thursday announced plans to elect Cohen, 35, former CEO and co-founder of burgeoning pet supplies online store Chewy, as chairman of the board after the annual meeting of shareholders of the company on June 9.
The Grapevine, Texas-based firm also brought in venture capital veteran Larry Cheng, co-founder and managing partner of Boston-based Volition Capital, and Kraft Heinz senior vice president Yang Xu as the additional board members.
Thursday’s announcement adds to a series of recent board and leadership reshuffles at GameStop as Cohen strives to improve the company’s digital presence and service experience client alongside two other board members, including former Chewy executive Alan Attal and founder of Hestia Capital. Kurt Wolf, an activist shareholder who (like Cohen) criticized former directors for GameStop’s poor financial performance.
The company also announced Thursday that it plans to pay its directors only with GameStop shares, as opposed to the $ 140,000 that most directors received in cash last year (representing a slight majority of total compensation).
Shares of GameStop, which have soared 930% this year, have climbed more than 6% pre-trade after the announcement.
$ 1.9 billion. That’s what Cohen, who owns around 13% of GameStop’s shares, is worth as of Wednesday’s market close, according to UKTN.
GameStop’s unlikely surge has continued with revenge (and volatility) since Reddit traders declared it their stock of choice in January, as they broke into Wall Street’s most courted companies. The plight of physical retailers has hit GameStop particularly hard over the past decade, wiping out nearly 90% of the action’s earnings until the end of 2019, as PC games and independent companies like Minecraft gobbled up. market share. Current company CEO George Sherman joined the group in April 2019, but GameStop’s stock started to rise late last year as Cohen, 35, started buying actions and explode the leadership to[ing] the mindset, resources and plan needed to [help GameStop] become a player in the dominant sector. Cohen’s growing involvement helped him and two of his fellow Chewy win seats on the GameStop board in January, fueling the uptrend among Reddit traders who expected the turnaround.
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