The firm additionally stated Thursday that following the annual assembly, all board administrators will likely be compensated totally in inventory — which presumably will inspire them to take motion to spice up the value additional. Board members may also have their compensation diminished by almost 30% from a 12 months earlier.
Shares of GameStop rose about 5% on the information.
GameStop shares are up almost 850% in 2021 — however are at the moment buying and selling greater than 60% beneath their peak value from late January.
GameStop named Cohen as the top of a strategic planning and capital allocation committee in early March. As a part of that function, Cohen was anticipated to strengthen GameStop’s on-line commerce operations.
GameStop, like many retailers, has been hit laborious by the Covid-19 pandemic. Sales in its most up-to-date quarter have been down 3% from a 12 months in the past and beneath Wall Street expectations.
But GameStop had been struggling even earlier than coronavirus, largely due to a shift to extra on-line and cell video games that may very well be downloaded on to telephones, consoles, PCs and tablets.
Enter Cohen, who first took a stake in GameStop in September 2020. His affect on the retailer is bearing fruit. Although general gross sales have been down in the course of the vacation 2020 interval, on-line gross sales greater than doubled. E-commerce now accounts for greater than a 3rd of complete income, up from simply 12% within the fourth quarter of 2019.