GameStop jumps as it taps billionaire activist investor Ryan Cohen as CEO for zero salary

• Gamestop stock jumped as much as 7% Thursday after it announced Ryan Cohen as its new CEO.
• The billionaire investor will not receive any compensation for the role as president, chief executive, and chairman.

Shares of Gamestop climbed as much as 7% Thursday after the company announced billionaire activist Ryan Cohen would take the helm as chief executive officer for zero salary.

The stock pared some of its gains to move about 2.7% higher at the open, changing hands at roughly $17.64.

Cohen, who also has roles as chairman and president of Gamestop, is the largest investor in the brand that became a meme-stock phenomenon during the pandemic. He has a net-worth of about $3.2 billion, and owns a 12.1% stake in the retailer.

In the press release, Gamestop said Cohen "will not receive compensation" for the role.

Three months ago, the company fired then-CEO Matthew Furlong, a former Amazon executive. In the most recent quarter, Gamestop saw larger than expected losses and missed Wall Street estimates.

The company is worth about $5 billion — about $3 billion less than it was when Furlong departed.

Cohen first took a stake in Gamestop in 2020, and joined its board in January 2021. That June, he took over as chairman, and the appointment helped spark a huge surge in the stock.

Shares of Gamestop peaked at $483 in January 2021 as a retail-driven short-squeeze play netted huge gains for everyday traders and piled billions of dollars in losses up for some hedge funds.