Best Buy Selects Spencer Stuart to Lead CEO Search
Best Buy Company, Inc., has selected a search firm to help find its next CEO.
The Richfield-based electronics retailer said Monday that it chose Chicago-based Spencer Stuart because of the firm’s global expertise and its experience recruiting for retail and digital companies. Spencer Stuart has 53 offices in 29 countries, and it completed more than 4,000 assignments last year, according to its website.
Best Buy hasn’t had a permanent chief executive since former CEO Brian Dunn abruptly resigned in April. The company last week released the results of an independent investigation, which found that Dunn violated company policy by engaging in a close personal relationship with a female employee.
The investigation also found that Chairman Richard Schulze “acted inappropriately” when he failed to notify Best Buy’s audit committee after learning in December about allegations of such a relationship. At the company’s annual meeting on June 21, Schulze will step down from his position as chairman—although he will serve the remainder of his director term, which goes through June 2013.
Best Buy said last month that it expects the CEO search process to take six to nine months. Both internal and external candidates will be considered.
In addition to announcing its search firm selection, Best Buy on Monday revealed its compensation package for interim CEO G. “Mike” Mikan, who is also a director of the company’s board and a candidate for the permanent CEO spot.
Mikan’s annual cash compensation will total $3.3 million. That includes an annual base salary of $1.1 million—and a $2.2 million payment that he’ll receive in lieu of participating in Best Buy’s short-term incentive plan.
After completing his duties as interim CEO, Mikan will also receive up to 263,000 Best Buy shares valued at up to $5 million.