GameStop on Wednesday unveiled a potential $3.54 billion compensation package for CEO Ryan Cohen, hinging on a turnaround that requires him to lift the struggling videogame retailer's market value more than tenfold and sharply boost profits.

Shares of the company rose 4% in premarket trading.

The company said Cohen will receive no guaranteed pay in the form of salary, cash bonuses or stock options under the package, making his compensation entirely "at-risk" of achieving the ambitious targets.

The award resembles the 10-year incentive plan approved for Elon Musk at Tesla, under which compensation was tied entirely to stock options that vest only if ambitious market capitalization and operating profit goals are achieved.

GameStop said Cohen's package consists of stock options to purchase more than 171.5 million shares in GameStop at a price of $20.66 per share. The company now has a current market capitalization of $9.26 billion.