Minneapolis -- A Tuesday report by Bloomberg said that Best Buy compensation consultant Don Delves resigned after Best Buy awarded more than 100 managers retention bonuses that weren’t tied to performance. Citing people familiar with the matter, Bloomberg reported that Delves – who is president of Chicago-based Delves Group and was retained by the Best Buy board -- was strongly opposed to the payments. He has worked with the retailer’s compensation committee for seven years as an independent consultant. CFO James Muehlbauer and U.S head Michael Vitelli are said to be among executives awarded extra pay as incentive
Best Buy's former Chairman Richard Schulze is not expected to present a buyout or other proposal to the company's board anytime soon, a person familiar with the situation said, putting a damper on market expectations that a move might be imminent. Shares of electronics dealer Best Buy cnbc_quoteComponent_init_getData("bby","WSODQ_COMPONENT_BBY_ID0EGAAC15839609","WSODQ","true","ID0EGAAC15839609","off","false","inLineQuote"); rose more than 10 percent on Monday morning to $23.57 amid growing talk that Schulze was , but fell back to around $22, or up 5 percent, on word the bid was unlikely to come soon. Discussions around a leverage buyout are still in the early stages, the person said. Schulze,
Best Buy founder Richard Schulze is exploring taking the world’s largest electronics retailer private as he considers options that include selling his stake, according to a person familiar with the matter. Schulze, who has a 20 percent shareholding in the Richfield, Minn.-based company, is working with Credit Suisse Group AG on his plans, said the person, who asked not to be identified. The 71-year-old said in May he would step down as chairman after an internal probe found he failed to tell the board about allegations that then-CEO Brian Dunn was having an inappropriate relationship with a female employee.
Saying his goals are to "shrink the company's physical footprint and substantially reduce our cost structure," Best Buy interim CEO Mike Mikan provided details about the struggling retailer's plans to reduce costs by $800 million over the next three years. Mikan and his team are in the process of creating a turnaround blueprint designed to use IT, customer services and predictive analytics to more closely connect Best Buy to consumers. During Q1 of fiscal 2013, which ended May 5, 2012, the retailer closed 41 of the 50 underperforming big-box stores.
Best Buy officials said Monday that former CEO Brian Dunn, who resigned after a company investigation found that he had a personal relationship with a female employee, demonstrated “extremely poor judgment and a lack of professionalism.” However, the probe found no evidence that he improperly used company resources, including the use of aircraft. In related news, Best Buy’s founder Richard Schulze has decided to step down as chairman of the board for the retail chain. The board determined that Schulze “acted inappropriately” when he failed to notify Best Buy’s Audit Committee of the allegations.
According to a filing by Best Buy, former CEO Brian Dunn may receive $3.3 million or zero in termination payments following his highly publicized resignation. The payout is dependent on whether Dunn is determined to have left voluntarily on April 9. In the filing, Best Buy said it's reviewing Dunn’s compensation pending its investigation into his personal conduct. The company also said it will make the results of the probe publicly available and will disclose the final terms of his departure once resolution is reached. Dunn is accused of using company resources to conduct an improper relationship with a female employee.