GameStop names Ryan Cohen as CEO effective immediately, won't receive salary

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GameStop said Thursday morning that billionaire activist investor Ryan Cohen would take over as the video game retailer’s chief executive, chairman and president effective immediately — and he won’t be collecting a salary.

Shares of the company jumped more than 6% in premarket trading following the announcement.

GameStop’s board, with Cohen abstaining, unanimously voted to appoint the entrepreneur as the retailer’s top executive on Wednesday. Cohen, who previously held the position of executive chair, will now step down, according to the securities filing. He won’t be receiving any compensation for his work either, the news release stated. The move comes after GameStop dismissed CEO Matthew Furlong and made Cohen its executive chairman. It also appointed Mark Robinson, a long-time employee, as the company’s “principal executives officer” and general manger. GameStop didn’t give a reason for Furlong’s dismissal at the time, but it came just months after the company had reported its first quarterly profit in two years with Furlong at the helm.

Several weeks later, the company announced that CFO Diana Saadeh-Jajeh was resigning.

GameStop Chairman Ryan Cohen.

Source: CNBC

With the latest move, Cohen will also assume the role of principal executive officer from Robinson. In June, he was promoted to principal executive officer from his previous roles as general counsel and secretariat. Now, he will resume as just general counsel and secretary, according to a securities filing.

Cohen, who founded pet food retailer

Chewy

and has become known as the “king” of meme stocks, bought a stake in GameStop in 2020 and joined the board in 2021 – during the height of the meme phenomenon.As of late June, his firm RC Ventures was GameStop’s largest shareholder with a 12.09% stake, according to FactSet.Since Cohen joined the company, the business hasn’t shown many signs of a turnaround, albeit with some exceptions. GameStop released its second-quarter results earlier this month. The company posted a smaller loss than a year before, and a slight rise in revenue.