Motorsport Games increases executive and board compensation, sets new bonus criteria

Motorsport Games Inc. (NASDAQ:MSGM), a gaming company with a market capitalization of $15.08 million, announced updates to executive and board compensation following meetings of its Compensation Committee and Board of Directors held on August 29, 2025. The company’s stock has shown remarkable momentum, gaining over 133% in the past six months, according to InvestingPro data. Based on InvestingPro’s Fair Value analysis, the stock is currently fairly valued.

Effective September 1, 2025, the annual base salary for Chief Executive Officer Stephen Hood will increase to $485,000, while Chief Financial Officer Stanley Beckley’s annual base salary will rise to $300,000. Both executives will receive a catch-up bonus for 2024, with $50,000 awarded to the CEO and $30,000 to the CFO, to be paid in September 2025.

The company also established four key performance metrics for executive annual bonuses for 2025, each weighted at 25%. The annual bonus, if earned, will be paid in cash during the first fiscal quarter of 2026 and is set at 50% of the CEO’s base salary and 20% of the CFO’s base salary.

No equity awards were granted to executives or board members in 2024 or 2025, as the company has not obtained shareholder approval to increase the number of shares available under its 2021 Equity Incentive Plan.

For the Board of Directors, several changes were approved effective September 1, 2025. Per-meeting fees for board members will be eliminated, and the annual cash retainer for each board member will increase from $25,000 to $40,000. Committee chairs will receive annual compensation as follows: Audit Committee, $20,000; Compensation Committee, $15,000; and Nominating and Corporate Governance Committee, $10,000. Committee members will receive $8,000 for the Audit Committee, $5,000 for the Compensation Committee, and $2,500 for the Nominating and Corporate Governance Committee. The annual compensation for the Chairman of the Board will be $15,000, prorated from the date of appointment. Cash retainers are paid quarterly in advance.

The Board also acknowledged that non-employee directors remain legally entitled to equity compensation previously owed for 2024 and 2025, to be granted or settled in cash or other consideration upon a change of control or departure not for cause. For deeper insights into MSGM’s financial health and performance metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes additional ProTips and detailed analysis of the company’s financial position.

This information is based on a press release statement and details disclosed in the company’s SEC filing.

In other recent news, Motorsport Games reported its Q2 2025 earnings, showcasing a significant financial turnaround. The company achieved its first-ever positive income from operations, marking a historic milestone. Revenues increased by 37.7% year-over-year, reaching $2.6 million, while net income soared by 103% to $4.2 million. These results indicate a strong recovery for Motorsport Games. Despite a slight decline in stock price during regular trading hours, aftermarket trading reflected investor optimism. The positive earnings report is a key development for the company, highlighting its improved financial health. This marks a pivotal moment in Motorsport Games’ financial trajectory.

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