GameStop withdraws CEO Performance Award proposal amid eBay acquisition focus

Ryan Cohen just told his own board to take his pay package off the table. GameStop’s CEO and Chairman requested the withdrawal of a proposed Performance Award that could have been worth around $35 billion, choosing instead to keep the company’s attention squarely on its bid to acquire eBay.

The award that never was

GameStop first proposed the CEO Performance Award back in January 2026. It was designed as an entirely at-risk package, meaning Cohen would collect nothing unless he hit some genuinely aggressive milestones.

The targets included pushing GameStop’s market capitalization to $100 billion and generating $10 billion in cumulative EBITDA. The award required shareholder approval to take effect. Now it won’t get the chance to face that vote.

The eBay bid and its messy reception

GameStop made its non-binding offer to acquire eBay at $125 per share around May 3, 2026, valuing the e-commerce giant at approximately $55 to $56 billion. eBay’s board took about nine days to respond, rejecting the bid on May 12 with language that was, diplomatically speaking, not encouraging.

eBay called the proposal “neither credible nor attractive.” The rejection cited a lack of credibility and insufficient strategic fit as primary reasons.

GameStop didn’t arrive at eBay’s doorstep empty-handed, though. The company had quietly accumulated roughly a 5% economic stake in eBay through a combination of derivatives and direct stock purchases before making the acquisition bid. GameStop has signaled it’s prepared to escalate, expressing readiness to pursue proxy fights if necessary.

Cohen’s compensation gamble

Since stepping into the CEO role in September 2023, Cohen has operated without any fixed salary or guaranteed compensation. Every dollar he might earn has been tied to performance. Pulling the one major compensation proposal on the table makes his arrangement even more unconventional. Cohen’s entire financial upside from running GameStop remains concentrated in his existing equity stake rather than any executive pay structure.

What this means for investors

The withdrawn compensation package removes one source of potential dilution and shareholder controversy. The more consequential question is whether the eBay pursuit goes anywhere. eBay’s board has already rejected the initial offer, and their language suggested they aren’t particularly open to negotiation. GameStop’s 5% stake gives it leverage, but converting that into an actual deal, against a hostile board, at a $55 billion price tag, would be unprecedented for a company of GameStop’s profile.

For traders watching GME, the withdrawn award reduces potential future share dilution. But the real price driver remains the eBay situation. A failed bid could leave the company with a large eBay stake, no deal, and a CEO still working without a paycheck.

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