Best Buy's board of directors have acknowledged mistakes and insist it has revised its executive pay policies to address shareholder concerns, the Pioneer Press reports.
The Richfield-based consumer electronics giant will now rely on a greater percentage of performance-based equity incentives and less on stock options.
The changes are in response to the backlash over a multimillion farewell package given to ousted CEO Brian Dunn last year after he resigned amid reports of an inappropriate relationship with a younger Best Buy employee.
"Many felt that the Company offered Mr. Dunn more than he was entitled to and that the payments did not accurately reflect his business performance in the previous year," Best Buy Chairman Hatim Tyabji wrote in a letter to shareholders, the Business Journal reports. "This feedback ultimately took the form of a shareholder vote of “no” on "Say on Pay." It is fair to say that the Board and I have heard these concerns and take them into full account when determining future remuneration for senior executives."
The Pioneer Press says shareholders will get another chance to vote on Best Buy's executive compensation policies in June.
Best Buy gave 10 current and former executives compensation packages valued at nearly $64 million in the last fiscal year, the Business Journal reports.
CEO Hubert Joly led the way with a package worth $19.6 million. The former Carlson CEO joined the struggling retailer last September.