Best Buy Selects CEO Search Firm

21 May, 2012 By: Erik Gruenwedel

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Interim CEO receives $127,000 every two weeks

Best Buy Co. May 21 said it has selected Spencer Stuart organize a nationwide search to consider internal and external CEO candidates to replace departed chief executive Brian Dunn.

The Minneapolis-based retailer’s board of directors search committee — headed by Kathy Higgins Victor and comprised of independent directors — selected Spencer Stuart because of its global expertise and experience recruiting for retail and digital companies, according to a statement.

Separately, Best Buy said interim CEO George “Mike” Mikan will receive bi-weekly payments based on annual cash compensation of $3.3 million. Mikan also receives up to 263,000 shares of Best Buy stock valued at approximately $5 million upon the completion of his service as interim CEO.

The final amount of Mikan's stock award will be based on length of service and otherwise determined by the compensation and human resources committee of the board based on his performance in the role.

Mikan is considered an employee-at-will and is not subject to a separate employment agreement.

Departed CEO Dunn received severance of $6.6 million, despite resigning before an internal audit committee released a report critical of his personal relationship with a female employee. The audio committee also rebuked founder and chairman Richard Schulze for not disclosing his personal knowledge of Dunn’s affair.

Best Buy posted a loss of $1.7 billion during its most recent quarter. It reports Q1 results May 22.

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