Best Buy CEO: We'll rise despite upheaval

After a series of bombshells that have shaken the company, Best Buy's interim CEO is trying to reassure employees that the electronics retail giant will rebound and rise again. "This has undoubtedly been the most difficult period in Best Buy's history," G. Mike Mikan said in a video message to employees Tuesday, the Pioneer Press reports.

Author:: BMTN Staff
Updated:: Mar 8, 2018
Original:: May 15, 2012

After a series of bombshells that have shaken the company, Best Buy's interim CEO is trying to reassure employees that the electronics retail giant will rebound and rise again. "This has undoubtedly been the most difficult period in Best Buy's history," G. Mike Mikan said in a video message to employees Tuesday, the Pioneer Press reports.

Experts are weighing in on how Best Buy handled the upheaval, and their reviews are mixed, TwinCities Business reports.

It's been a day since it was announced that Best Buy Co. founder Richard Schulze would step down as chairman after an investigation found he did not tell the board about allegations that then-Chief Executive Officer Brian Dunn was having an inappropriate relationship with a female employee. Star Tribune reporter Thomas Lee talks about what happens next in this video.

Best Buy's internal report found that while Dunn acted inappropriately with a subordinate, it found no evidence that he misused assets.

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The Richfield-based consumer electronics giant hopes to hire Brian Dunn's replacement within the next nine months. Dunn resigned in April amid an internal probe that later found he had an inappropriate relationship with a female employee. Best Buy also disclosed interim CEO Mike Mikan's compensation package. He is considered a candidate to permanently replace Dunn.

Four board members will lead the global search for a new chief executive officer at the Richfield-based electronics retailer. Brian Dunn resigned from the leadership position amid an investigation into his personal conduct. Interim CEO Mike Mikan is considered a candidate to permanently replace Dunn. Best Buy expects the search process to take six to nine months.

Best Buy's new top executive, Hubert Joly, tells the Star Tribune that he's "not a big fan of shrinking the company." He wants the Richfield-based electronics giant to maximize sales with its existing stores. One analyst was also a bit puzzled by Joly's comments about "showrooming." "I don't think he's right. I think there's plenty of evidence of people doing that," said Laura Kennedy.

Interim Best Buy CEO G. "Mike" Mikan is getting an annual base salary of $1.1 million, the equivalent of former CEO Brian Dunn's pay. In addition, Best Buy also will pay Mikan based on the annual performance bonus that Dunn could have earned last year: $2.2 million. Corporate governance experts say Mikan's pay is overly generous, given his lack of retail experience.

A spokeswoman for Best Buy says a committee was investigating Brian Dunn's personal conduct when the CEO chose to resign. She says the issues that led to the investigation were not related to Best Buy's operations or finances. The company described Dunn's departure as a "mutual agreement that it was time for new leadership."

Dunn is stepping down after being with the Richfield-based electronics retailer for nearly 30 years. Best Buy recently announced it was closing 50 stores and terminating 400 corporate jobs. Board member Mike Mikan will serve as interim CEO during the search for a permanent replacement.

The Star Tribune reports Best Buy is investigating allegations Brian Dunn used company resources to carry out an inappropriate relationship. A company spokesperson tells the newspaper "the investigation is ongoing" despite Dunn stepping down from his leadership position Tuesday.

Best Buy founder and Minnesota native Richard Schulze has announced he is stepping down as chairman after the release of an investigation into the conduct of former CEO Brian Dunn. The investigation showed that Schulze knew about about Dunn's close personal relationship with a female employee and failed to report it to the board.