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.
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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.

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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.

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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."

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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.