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  • Earnings Preview: RadioShack [View article]
    Even though RSH may show profit mainly due to personnel cutbacks, in the long run RSH will not see sustained sales growth or stock price growth till they fix the pay for store personnel. I hope the analyst will ask hard questions such as:
    1. How has the high rate of employee turn rates been?
    2. Why is it the executives have guaranteed bonuses of $75,000 and everyone else has no guaranteed bonus?
    3. Why does RSH pay one individual over $9,000,000?
    4. What benefits has the company gained by throwing so much money at the executives?
    5. Why does RSH have Soviet style central control over stock repleishment for its stores which does not allow field management to react to changing store conditions?
    6. Why does RSH executives do not respect and value their seasoned store employees who have good track records by giving them no raises, paying them the same wage as a new employee, and in some cases paying them the same wage they earned twenty years ago?
    7. Why does the CEO get raises while the company profit lowers or has sales losses?
    8. While the company touts customer service, it will not allow a customer to buy a pre-paid phone only on the auspice "we make no money"?
    9. Why does RSH tell its store employees that they get commission when they sell accessories when that is not true? If a sales person sells a computer with a case and an external drive, then the emplyee get 0% commision, why?
    10. Why does RSH have the stores do a major reset and then cut back the hours? Is it because the excutive bonus structure is positively impacted when they pay less on payroll?
    11. What has the rate of loss due to theft due to the fact that there are not enough emplyees in the store due to cut backs?
    12. Julian Day has said that the company has a lot of cash in reserve. I know they have recently paid back some debt and have invested in buying back stock. Although the stock price is near its 52 week high, it is still historically low. With all that cash, the stockholder has seen no benefit and our divident is still the same. The only ones benefitting truly have been the pockets of the executives for it surely is not the store personnel. If RSH is ever to be the best company for its stockholders and the best company to work for it needs to stop treating store personnel as chattel and pay them for the good job they do.
    These are just a few questions I hope will be answered honestly the next time the company has to a report or at an anual meeting of the stockholders
    Oct 23 17:09 pm |Rating: +2 0 |Link to Comment
  • Is Radio Shack Poised for Another Double? [View article]
    The financials you speak of may be there but RSH has problems with their exsisting sales people which will inhibit any long term growth. Some of us in the field have experienced drastic cuts in our compensation. Since 2005, the best of us have had a cut of over $400.00 per month and since 2006 an excess of $200.00 per month. Those of is on the store level, the lowest rung on the ladder, have had to pay for the grievous mistakes of corporate management. In fact the better a salesperson is for the company in producing profitable sales the bigger the pay cut is rewarded to that radio shack sales professional, and sales mediocrity has been rewarded. The present compensation plan is not conducive to create profitable sales for the company. We get no commission on finished products regardless of its gross margin. It use to be the more we sell the more financial reward we would receive. With the present pay plan, this is no longer true. The executives get new bonuses along with their old bonuses while the sales professional pay is rapidly reaching poverty level. Some of us can not even pay the basic needs to live, whereas in the past, we could. Employee turnaround has increased; many district managers and store managers have left the company. If profit is to increase AND revenue increase, then experienced sales professionals who knows what they are doing in the field is necessary along with a fair sales compensation plan. The company forgets its the sales persons who bring the dollars into the company.
    Oct 19 13:28 pm |Rating: 0 0 |Link to Comment
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