Struggling consumer electronics retailer Best Buy Co., Inc. (BBY: Quote), which is engaged in a takeover battle with its founder and former Chairman Richard Schulze, revealed Tuesday in a regulatory filing that it will pay the newly appointed President and CEO Hubert Joly an annual base salary of $1.175 million.
Richfield, Minnesota-based Best Buy stated in the form 8-K filed with the U.S. Securities and Exchange Commission that Joly's annual compensation will include a package of cash and stock awards valued at $16.25 million along with his annual base salary.
The additional package will include awards to compensate Joly for certain forfeitures incurred upon termination of his prior employment as CEO of Minneapolis, Minnesota-based hospitality, restaurant and travel giant Carlson, one of the largest privately-held companies in the USA, since March 2008.
This will include a buy-out cash award of $3.5 million as well as a stock grant valued at $3 million and restricted stock units valued at $6 million, with the stock grants carrying certain vesting terms.
Also included in the package will be a annual long-term incentive compensation awards of not less than $8.75 million in fiscal 2014, and a short-term target annual bonus opportunity of up to 400 percent of the base salary.
Joly, aged 53, was named to the positions on Monday and the appointment is effective sometime in early September when he manages to get his job visa clearance as he is born and raised in France.
Joly is credited with a track record of successfully turning around companies over the past 15 years in the technology, media and services sectors. These include leading Vivendi Universal Games from 1999 to 2001, and the restructuring of Vivendi's media assets from 2002 to 2004. Other companies were Electronic Data Systems or EDS (now part of Hewlett-Packard Co. (HPQ)) in France from 1996 to 1999, and Carlson Wagonlit Travel from 2004 to 2008.
Joly, who began his career as a partner with McKinsey & Co. from 1982 to 1996, also serves on the board of Ralph Lauren Corp. (RL) since 2009.
BBY closed Tuesday's regular trading session at $17.91, down $0.25 or 1.38% on a volume of 42.31 million shares.
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by RTT Staff Writer
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