GameStop announced Thursday that billionaire Ryan Cohen will take over as the chief executive, chairman and president of the video game retailer effective immediately – and he will not draw a salary. “Mr Cohen will not receive compensation for serving as the Company’s President, Chief Executive Officer and Chairman,” GameStop said in a press release.
Ryan Cohen is a Canadian entrepreneur and activist investor who is already GameStop’s executive chairman and biggest shareholder. His firm RC Ventures has a 12.09% stake in the American video game, consumer electronics, and gaming merchandise retailer.
In an email sent to staff just hours after his appointment, Cohen said that each expense to the company will be scrutinised to ensure that GameStop survives.
“It is not sustainable for GameStop to operate a money losing business,” he wrote. “…Our expense structure must allow us to endure any adverse scenario.”
“Our job is to make sure GameStop is here for decades to come,” he wrote in the email that was sent to corporate employees and store leaders. “Extreme frugality is required. Every expense at the company must be scrutinized under a microscope and all waste eliminated. 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, the co-founder of pet food company Chewy, said prospering in the retail business means survival. He highlighted the three deadly sins that can harm retailers – buying bad inventory, using leverage and running expenses too high.
“I expect everyone to roll up their sleeves and work hard. I’m not getting paid, so I’m either going down with the ship or turning the company around. I much prefer the latter,” he concluded, drawing attention to his own $0 salary.
Cohen takes over as CEO of GameStop three months after the company fired its then-CEO Matthew Furlong. The video game retailer is today worth $5 billion, according to Business Insider. The struggling chain has closed over 1,000 stores in recent years, nearly a fifth of the total. Sales of game CDs have suffered amid a shift to online purchases. GameStop’s software sales in the latest fiscal year were almost 40% lower than 2019.
Cohen’s personal net worth is about $3.2 billion, as per Forbes.
(With inputs from Reuters)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
