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GameStop Investors File Lawsuit to Block Vote on CEO's $3.5 Billion Compensation Package
Svmuu News: A GameStop retail investor has filed a class-action lawsuit in the Delaware Court of Chancery seeking to block a vote on CEO Ryan Cohen’s $3.5 billion compensation package until proper disclosures are made to shareholders. The lawsuit alleges that GameStop’s board repeatedly amended procedures related to shareholder voting—including whether Ryan Cohen could cast votes on his 9.3% stake and how abstentions would be counted—before issuing a misleading proxy statement, in an effort to suppress voter turnout among retail investors. Shareholders were originally scheduled to vote on the compensation plan on July 7. If the company achieves a price-to-earnings ratio of $10 billion and cumulative earnings before interest, taxes, depreciation, and amortization (EBITDA) of $10 billion, Ryan Cohen will receive a $3.5 billion stock option award. (Bloomberg)
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