Controversial video game retailer GameStop, worth $5 billion now, has elected Ryan Cohen as President and CEO who will not receive any salary. In a statement, the company said “Cohen will not receive compensation for serving as president, CEO and Chairman”.
In an email sent to employees, 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. Our expense structure must allow us to endure any adverse scenario,” he was quoted as saying.
“Extreme frugality is required. Every expense at the company must be scrutinised 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 added.
Cohen’s personal net worth is about $3.2 billion, according to Forbes.
In June, the video game company fired CEO Matt Furlong without any cause.
Last year, GameStop terminated its Chief Financial Officer Mike Recupero, while sacking employees in another round of mass layoffs.
In 2021, GameStop was probed for driving millions of his customers to buy up the stock and take it “to the moon”.
The company received significant media attention during January and February 2021 due to the volatility of its stock price and the GameStop short squeeze, causing major financial consequences for certain hedge funds and large losses for short sellers.