RadioShack said Wednesday its board approved retention bonuses of up to $1.49 million combined for top executives, aiming to keep its leadership in place during the company's turnaround. Executives are entitled to a bonus if they remain employed by RadioShack through March 1, 2015. Chief Executive Joseph Magnacca is in line to receive $500,000. The remaining funds would go to Chief Financial Officer John W. Feray, Human Resources Chief Telvin P. Jeffries, Executive Vice President of Store Operations Troy H. Risch and Senior Vice President of Store Concepts Michael S. DeFazio.
Target Chief Information Officer Beth Jacob is resigning as the retailer overhauls its information security and compliance division in the wake of a massive pre-Christmas data breach. Target Chairman, President and CEO Gregg Steinhafel said in a statement released to The Associated Press that the company will search for an interim chief information officer who can help guide the company through the transformation. Jacob had been in her current role since 2008 and oversaw teams in the U.S. and India.
Following a disappointing holiday season, expectations were low ahead of RadioShack's fourth-quarter report. But the results were a shock, raising concerns about its chances for survival in today's marketplace. RadioShack's Chief Executive Joseph Magnacca, along with the company's new CFO John Feray, sought to reassure investors. Feray, who joined in January, said on a call that RadioShack, which plans to shut up to 1,100 stores, isn't considering "prepackaged bankruptcy" to get out of store leases quickly. He added RadioShack has "sufficient liquidity to meet its obligations" this year.
He's a painfully private entrepreneur with very public dreams for this city's decaying downtown core. Around Sin City, giddy officials are heralding online shoe retailer Tony Hsieh as a visionary, the latest in a line of moneyed Las Vegas dreamers such as billionaire Howard Hughes and casino mogul Steve Wynn. Mayor Carolyn Goodman says Hsieh is offering people a chance to open their dream businesses, and "that can't be bad."
Best Buy apparently told about 2,000 managers around the United States on Wednesday that they were being laid off, a move that would be the company's biggest job reduction since July 2012 as it continues to cut costs following a weaker-than-expected holiday season. The layoffs will affect about 1.4 percent of Best Buy's 145,000-person workforce, the Star Tribune learned.
The long-awaited earnings release and conference call of J.C. Penney's annual sales and earnings result yesterday gave an outline of the strategies the company will follow in order to be a winner. The 2013 results were impacted by the folly of the Ron Johnson era. There was merchandise that consumers didn't want that had to be marked down in order to make room for iconic brands that had been discontinued. The company's performance was also affected, as were all retailers, by the brutal weather that forced the closing of dozens of stores throughout the Central and Northern states.
Billionaire investor Carl Icahn and eBay are engaging in a public war of words that was ignited by an open letter Icahn sent to eBay shareholders yesterday. In the letter, Icahn accused eBay CEO John Donahoe of ignoring conflicts of interest on its board and called for the company to spin off PayPal. Icahn also disclosed he now owns 2.15 percent of eBay's stock. The letter specifically alleged that board member Marc Andreesseen has personally gained by purchasing large stakes in former eBay subsidiaries and advised and invested in direct eBay competitors Boku, Coinbase, Dwolla, Jumio and Fab.
The Container Store started a fund for employees in need and got a lot of pats on the back. A Wal-Mart store took up donations for employees in need during the holidays, and was pilloried for the effort. Two companies with two identical goals have two very different outcomes. What gives?
The much-maligned suit worn by the U.S. speedskating team should never have been victimized, Under Armour CEO Kevin Plank says in an exclusive interview. "It was a bit of a witch hunt that began to build," he says, in his first extensive interview since the Under Armour suit became a scapegoat for the failure of U.S. speedskaters to win Olympic medals. "The suit became the witch." Plank is so certain that the "Mach 39" suit is a winner that Under Armour will continue to invest in it and tweak it until the 2018 Olympic Games in South Korea.
In a surprising move, Gap informed its employees on Wednesday that it would set $9 as the minimum hourly rate for its U.S. workforce this year and then establish a minimum of $10 next year. Gap said this move would ultimately raise pay for 65,000 of its 90,000 American employees, including those at Banana Republic, Old Navy and other stores. Gap is making this move as many states consider raising their minimum wage, and as Republicans and Democrats debate a bill that includes a proposed increase in the federal minimum wage to $10.10 an hour by 2016.