GameStop Nixes $35 Billion CEO Bonus To Back $56 Billion eBay Takeover Bid
GME•GameStop's board has canceled a $35 billion performance award tied to a $100 billion market cap after CEO Ryan Cohen requested removal to focus on its $56 billion takeover bid for eBay. The City of Pontiac employees' fund filed a lawsuit alleging voting rule manipulation in a vote on the bonus plan.
1. Bonus Plan Cancellation
GameStop's board voted to eliminate a performance award that would have paid CEO Ryan Cohen up to $35 billion if the stock reached a $100 billion market capitalization. Cohen requested the removal to ensure leadership remains focused on improving operating results and pursuing strategic opportunities.
2. eBay Takeover Bid
The company has proposed a $56 billion bid to acquire eBay, a firm four times its size, with eBay's board rejecting the offer as neither credible nor attractive. GameStop plans to unveil detailed strategic rationale this week, outlining potential synergies and combined business model scenarios.
3. Shareholder Lawsuit
Investors led by the City of Pontiac employees' fund filed a class-action lawsuit in Delaware alleging the board manipulated voting procedures to favor insiders ahead of a bonus plan vote. A separate suit had sought to pause the award pending more comprehensive shareholder disclosures.
