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Bye Bye BBY

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  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    Update: Who watches over you? Answer. Nobody. This should make you sick.

    Best Buy Pay Expert Said To Quit Over Retention Bonuses
    By Chris Burritt and Jeffrey McCracken - Jul 23, 2012 6:45 PM ET

    A compensation consultant to Best Buy Co. (BBY)’s board quit after the electronics chain awarded more than 100 managers retention bonuses without tying them to performance, said three people with knowledge of the matter. Don Delves, who worked with Best Buy’s compensation committee for seven years as an independent consultant, was opposed to the payments, said the people, who asked not to be identified because the situation is private. Delves, president of the Chicago-based Delves Group, a corporate governance and an executive pay advisory firm, confirmed in a telephone interview that he resigned this month.
    Chief Financial Officer James Muehlbauer and Michael Vitelli, head of the U.S. division, were among executives awarded extra pay as incentive to stay while Best Buy seeks a replacement for Chief Executive Officer Brian Dunn, a June regulatory filing shows. The retailer’s stock had sunk 22 percent this year through July 20, torpedoed by the first annual loss in two decades and a scandal tied to Dunn’s conduct.
    “There were no performance criteria or metrics tied to it at all, which is sort of unusual,” said Frank Trestman, chairman of Richfield, Minnesota-based Best Buy’s compensation committee for 12 years until he resigned from the board in 2010. “You always try to tie it or at least couple it with some other offer that is performance related so it’s not just a matter of sticking around.”
    Leadership Continuity
    Best Buy said the incentive pay is “intended to ensure leadership continuity,” according to an e-mailed statement today.
    “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,” Best Buy said in the statement. “As part of our long-term plan, and to ensure a strong and stable future for the company, Best Buy’s board of directors has taken action to retain key senior leaders during the current period of transition.”
    Muehlbauer, Vitelli and two others -- International President Shari Ballard and Carol Surface, the head of human resources -- were set to get lump-sum cash payments of $500,000 each, according to the filing. The executives also were to receive $2 million in restricted stock as part of the bonus plan. Planned bonus packages for more than 100 other Best Buy managers were structured similarly, said the people.
    Retail Space
    “Two million dollars is a lot just for sticking around,” said James Reda, managing director of James F. Reda & Associates, a New York-based executive compensation consulting firm. “The retail space is shrinking so the odds of those four leaving is not great.”
    Best Buy director Mike Mikan is serving as interim chief executive officer, earning annual cash compensation of $3.3 million and as many as 263,000 shares worth about $5 million upon completion of the interim assignment, according to a company statement May 21.
    Trestman said Mikan’s compensation “seems exorbitant” if the assignment “could last nine months, 10 months or 11 months until you get a new CEO. I’m not saying that would be an exorbitant package once you find a permanent CEO.”
    Best Buy won’t discuss Mikan’s compensation or Trestman’s comments, Bruce Hight, a spokesman for the company, said by telephone.
    Dunn, 52, resigned in April amid revelations that he had an inappropriate relationship with a female employee. A month later, the chain said an internal probe found both he and Chairman Richard Schulze acted inappropriately in their handling of the matter, triggering Schulze’s resignation as chairman.
    Schulze, also Best Buy’s founder, is exploring whether to take the retailer private as he examines options, including a sale of his stake, a person familiar with the matter said last month. He held more than 20 percent of the company as of June, according to data compiled by Bloomberg.
    Jul 23, 2012. 10:01 PM | 2 Likes Like |Link to Comment
  • Unspinning The Best Buy Saga: Schulze The Vulture [View article]
    You have "kool-aid" (color -Best Buy Blue) stains all around your mouth. This company has changed so much in the last 12 years. With the death of Dick's wife, the moral compass was gone. BBY changed from a place to work and be respected, to a place to make a few bucks and then move on. With one exception, the "The Good Old Boy's club". This group did what was good for them and stepped on the employees below. They are now paying the price.

    Bye Bye BBY
    Dec 16, 2012. 11:45 AM | 1 Like Like |Link to Comment
  • Best Buy (BBY -3.5%) trades lower on a move attributed to building chatter that Richard Schulze is struggling to line up financing for a deal to buy out the retailer. [View news story]
    Thursday, November 29, 11:46 AM Best Buy (BBY -3.5%) trades lower on a move attributed to building chatter that Richard Schulze is struggling to line up financing for a deal to buy out the retailer.

    It sounds like Richard Schulze needs to put some additional cash in to make this work. Otherwise his complete BBY stocks with be lost when Best Buy follows the CC route.
    Nov 29, 2012. 06:30 PM | 1 Like Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    Update: leadership is working resumes. The hours, the promise, the COMPANY VALUES are all in question. I was in a store on Wednesday and was able to talk to the "sales floor leader". The pressure is at the highest level, the sinking ship is taking on water and everyone is ordering scuba gear and extra tanks. The "freeze" is coming soon and most will be jumping ship. Long live the "Company Values". Embrace Challenge and Change! (if you were an employee, this was crammed down your throats)- great for the Golden parachute exec - they never worry about the next paycheck. Just look at the most recent top 4 exec. $12 million bonus to them. Don't you just love how they pay the exec extra $$ not go leave, but if you work an hour of OT, you may be fired.

    BYE BYE BBY
    Jul 19, 2012. 10:07 PM | 1 Like Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    If this is George, one question. What keeps you awake at night?
    Jul 13, 2012. 07:16 PM | 1 Like Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    Forget the tension between Corp management and the current store employee, start thinking about the CUSTOMER. If The customer is not FIRST in the recovery phase of bringing BBY back from the dead, then BBY will become CC. Cut your service team and you will train your customer to go someplace else.
    Jul 10, 2012. 05:33 PM | 1 Like Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    You are correct. They are paying Big Bonuses. See below. Don't drink the Kool-Aid

    Destruction of Trust Between Management and Workforce

    First, Best Buy's decision to lay off workers comes about only one week after the company announced that it was giving $10 million in bonuses to four executives for doing nothing more than not leaving the company. An article describing those "continuity bonuses" can be found here.
    Jul 10, 2012. 02:00 PM | 1 Like Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    You must be smoking something from Hawaii. You just lost the only advantage in retail. The Service is what some people will spend extra money on. This is only the beginning of the service layoffs. All service techs, computer, TV, Appliance and installation techs need to unite and contact your local union. You need some representation. You have none! Make the call today or By By BBY.
    Jul 10, 2012. 01:52 PM | 1 Like Like |Link to Comment
  • Best Buy's 2012 Layoffs Reminiscent Of Circuit City's 2007 Layoffs [View article]
    The truth. The Heads of Service came from Best Buy Retail and the auto industry. They have completely screwed up this division. In order to cover up the over 3 years of mismanagement, they cut cost and look like they now will receive a promotion? I would think that any service employee would start to think "union".
    Jul 9, 2012. 03:39 PM | 1 Like Like |Link to Comment
  • Best Buy - Buy, Hold Or Sell? [View article]
    Did Best Buy pay all the bills in the 4th quarter to make the number they made?

    BYE BYE BBY
    Mar 3, 2013. 11:14 AM | Likes Like |Link to Comment
  • Richard Schulze appears to be backing off his bid to acquire Best Buy (BBY -0.7%) and will seek his former position as the chairman of the board, according to The Minneapolis Star Tribune. The investor has until midnight tonight to organize a bid or he will have to wait until next year. [View news story]
    The calm before the STORM. Cut 400 employees this week, in the next 90 days you can expect up to 2500 more. Without rev and with price match in place, the only way WALL STREET will respect the stock price is major expense cuts. The water cooler talk is that many employees want the severance package while BBY has the money in the bank to pay it.

    BYE BYE BBY
    Feb 28, 2013. 04:03 PM | Likes Like |Link to Comment
  • Best Buy (BBY -2%) founder Richard Schulze is mulling whether to scrap plans for a buyout of the struggling electronics chain and instead (along with other investors) obtain a minority stake, the WSJ reports. Sources claim Schulze, who owns ~20% of Best Buy, hasn't yet secured enough financing for a buyout, which is leading him to explore his options. But no decision has been made yet. The report led Best Buy to dive in the final minutes of trading after rallying earlier. [View news story]
    Don't forget his shares also dropped. He owns 20%, I think his loss was just a little bit more than yours.

    Bye Bye BBY
    Feb 13, 2013. 10:50 PM | Likes Like |Link to Comment
  • New Best Buy (BBY) CFO Sharon McCollam is granted 107.6K shares of company stock, with options for another 381.1K. Shares +4.4% AH. Are traders misinterpreting this as a large insider buy? (Form 4[View news story]
    BBY is about Togo broke.

    Bye by BBY
    Dec 13, 2012. 11:29 PM | Likes Like |Link to Comment
  • New Best Buy (BBY) CFO Sharon McCollam is granted 107.6K shares of company stock, with options for another 381.1K. Shares +4.4% AH. Are traders misinterpreting this as a large insider buy? (Form 4[View news story]
    This department has 30% margin. Most consumers don't even know that BBY has this department. BBY is known for electronics .

    Bye Bye BBY
    Dec 13, 2012. 11:29 PM | Likes Like |Link to Comment
  • New Best Buy (BBY) CFO Sharon McCollam is granted 107.6K shares of company stock, with options for another 381.1K. Shares +4.4% AH. Are traders misinterpreting this as a large insider buy? (Form 4[View news story]
    Does This explains the stock grants?

    Thursday, December 13, 10:29 AM A strong unexplained move in shares of Best Buy (BBY +18.1%) after the market closed yesterday takes on a different context off the news report this morning that Richard Schulze will make a formal bid to the board this week. Fortune editor Dan Primack can't help but call the BBY spike suspicious given the inside trading headline du jour.
    Dec 13, 2012. 12:11 PM | Likes Like |Link to Comment
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