- Special Report: Syria's Islamists seize control as moderates dither
- Obama defends U.S. intelligence strategy in wary Berlin |
- Stocks, bond prices drop as Fed points to reduced bond buying
- Wall St. slumps after Bernanke hints at slowing bond buying |
- Prosecutors plan more charges against accused Cleveland kidnapper
UPDATE 1-Best Buy compensation consultant quits after bonuses
July 23 (Reuters) - A Best Buy Co compensation consultant quit after the electronics retailer gave more than 100 managers retention bonuses without attaching performance targets to those awards, Bloomberg reported on Monday, citing three people close to the matter.
Don Delves, who was an independent consultant to Best Buy's compensation committee for seven years, confirmed in a telephone comment with Reuters that he had quit this month, but did not give a reason.
Delves was opposed to the awards, Bloomberg reported.
Chief Financial Officer James Muehlbauer and Michael Vitelli, head of the U.S. division, were among executives awarded extra pay as incentive to stay at the company during the search for a replacement for Chief Executive Officer Brian Dunn, according to a June regulatory filing.
"We're confident that the compensation paid by Best Buy is fair, reflects market realities and is based on responsible practices that reflect the transformation of the organization," Bruce Hight, a spokesman for Best Buy, said in a statement.
"Compensation incentives approved by the board are intended to ensure leadership continuity at Best Buy, keeping the team in place and building for the future," Hight said.
Dunn abruptly departed in April, amid an internal probe that eventually found he had engaged in an improper relationship with a female employee.
Best Buy founder and chairman Richard Schulze resigned from the retailer's board in June after an internal probe found that he failed to tell the board about the allegations swirling around Dunn and the female employee.
Schulze is exploring options for his 20.1 percent ownership stake, a move seen as a possible precursor of a Schulze-led private takeover of the chain that is struggling to compete with online rivals such as Amazon.com.
Best Buy's sales at stores open at least 14 months, or same-store sales, have fallen in seven of the last eight quarters. The management distractions add to its challenges at a time when analysts say the retailer should be focused on the all-important holiday season.
- Tweet this
- Share this
- Digg this