GameStop's new CEO Ryan Cohen accepts zero salary, focuses on company survivaltext_fields
American video game and gaming merchandise retailer GameStop has appointed Ryan Cohen as its President and Chief Executive Officer (CEO), and notably, he will not receive any compensation for his role.
Cohen, whose company RC Ventures was the largest shareholder in GameStop with a 12.09% stake as of late June, is taking on the challenge of leading the struggling video game retailer.
In his first email to GameStop employees as CEO, titled "Survival," Cohen emphasised his commitment to ensuring the company's survival and long-term success.
He wrote, "Our job is to make sure GameStop is here for decades to come." He stressed the need for extreme frugality and urged a thorough review of all company expenses, emphasising the elimination of waste. He also made it clear that the company needed individuals who would manage funds responsibly, saying, "The company has no use for delegators and money wasters. I expect everyone to treat company money like their own and lead by example."
Cohen articulated the importance of survival in the retail industry and identified common mistakes that have led to the downfall of many retailers.
He cited buying bad inventory, using leverage, and running expenses too high as pitfalls to avoid. He challenged GameStop employees to focus on the basics and make the necessary changes to ensure the company's long-term viability. He also underlined his personal commitment to the company's success, stating, "I'm not getting paid, so I'm either going down with the ship or turning the company around. I much prefer the latter."
Ryan Cohen's appointment as CEO follows his previous role as the executive chair of GameStop.
His significant ownership stake in the company and his reputation as a successful entrepreneur have made him a central figure in GameStop's ongoing efforts to revitalise its business. He takes over as CEO from former Amazon executive Matt Furlong, becoming the company's third CEO in the past two years.
GameStop has faced challenges in recent years as the shift to online gaming and digital distribution of video games has outpaced traditional brick-and-mortar video game stores. Investors are pinning their hopes on Ryan Cohen's leadership and strategic plan to drive a turnaround for the company.