Best Buy pays up to lure new CEO
Hubert Joly / PR Newswire/AP
(AP) NEW YORK - Best Buy (BBY) is paying up for a turnaround.
Incoming CEO Hubert Joly will take home more than $15 million next year and stands to earn $16.5 million in stock grants over three years on top of salary and bonuses.
The nation's largest consumer electronics chain lured the turnaround expert with $20 million in "buyout awards" meant to compensate him for leaving benefits at his current job as CEO of Carlson, which owns Radisson hotels and the T.G.I. Friday's restaurant chain.
Best Buy hires hospitality exec as new CEO
Schulze presses Best Buy in quest for takeover
Best Buy profit drops 90 percent, misses estimates
Joly's pay package is on the high end, but not uncommon for a new CEO expected to lift a company out of the doldrums, according to Harry Schum, a senior consultant with Compensation Resources Inc.
Minnesota-based Best Buy has struggled against growing competition and customers' shift away from big computers and TVs and toward tablets and mobile phones.
Popular on MoneyWatch
- How to stop the mediocrity pandemic
- Reverse cell phone lookup service is free and simple
- LinkedIn: 3 tips for building a better profile
- Lawmakers say Apple dodged billions in taxes
- What homeowners should do before - and after - a tornado
- Top five 529 college plans
- Top 10 professional life coaching myths
- How to organize your job hunt