The firm additionally mentioned Thursday that following the annual assembly, all board administrators might be compensated solely in inventory — which presumably will encourage them to take motion to spice up the value additional. Board members may even have their compensation lowered by almost 30% from a yr earlier.
Shares of GameStop had been down 5% in late afternoon buying and selling following the information.
GameStop shares are up 800% in 2021 — however are presently buying and selling 65% under their peak value from late January.
GameStop named Cohen as the pinnacle of a strategic planning and capital allocation committee in early March. As a part of that position, Cohen was anticipated to strengthen GameStop’s on-line commerce operations.
GameStop, like many retailers, has been hit arduous by the Covid-19 pandemic. Sales in its most up-to-date quarter had been down 3% from a yr in the past and under 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 had 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.