“‘In corporate America, the people in charge, the professional directors and management teams, are not aligned with shareholders’”
That was GameStop Corp.’s Executive Chairman Ryan Cohen, who launched a blistering attack on corporate America during the annual meeting for the video-game retailer and sometime-meme-stock darling Thursday.
The activist investor stepped into the spotlight at the GameStop
GME,
meeting, just a week after the company announced the firing of Chief Executive Matthew Furlong and Cohen’s election as executive chairman.
“My responsibility is making sure GameStop is run by managers who treat company money like their own,” Cohen said. “In corporate America, the people in charge, the professional directors and management teams, are not aligned with shareholders.”
Cohen, the co-founder and former CEO of Chewy Inc.,
CHWY,
made his first investment in GameStop in August 2020 via his investment firm RC Ventures. News of Cohen’s 9% stake in the gaming retailer sent its stock surging. The activist investor quickly began pushing for an overhaul of GameStop, with a focus on digital sales, and he joined the company’s board in January 2021. He consolidated his power at GameStop when he became the company’s chairman in June 2021.
Related: GameStop snapback continues after Ryan Cohen’s election as executive chairman, CEO firing
The activist investor’s stinging rebuke of corporate America generated plenty of reactions on social media.
“Some of the realest truth in business today. No wonder all these lazy ‘business gurus’, overpriced executives and overpaid consultants hate @ryancohen,” tweeted @fuhQue_ken.
“We’re making Gamestop Great Again,” tweeted @ThiccumsGME, listing changes made at the company when Cohen became chairman.
Related: GameStop stock surges after Chewy co-founder takes 9% stake
“Great speech Ryan. I’ll invest and stay invested in any company that shares that sentiment,” tweeted @zipperskull5.
“Regardless of your views on @Gamestop, this is a refreshing speech by chairman @ryancohen,” tweeted @foundinghero.
Other Twitter users, however, were less than impressed with Cohen’s comments.
“Ryan Cohen, who got in and out of $BBBY in less than 8 months and made $60 million, is now lecturing “corporate America” on its lack of long-term commitment to the companies they own,” tweeted former bond salesman Martin Baccardax, who is now senior editor and markets correspondent at TheStreet.
Last year Cohen cashed out his entire stake in retailer Bed Bath & Beyond Inc.
BBBYQ,
with more than $58 million profit.
Related: Ryan Cohen cashed out of Bed Bath & Beyond stock with more than $58 million profit; shares plunge again
GameStop’s stock rose 0.2% Friday, compared with the S&P 500 index’s
SPX,
gain of 0.3%.
Additional reporting by Jeremy C. Owens.
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