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Published On: Thu, Aug 23rd, 2012

New Best Buy CEO Hubert Joly will earn over $6 million even if he can’t take the job

Best Buy has announced their new CEO, hotel/restaurant exec Hubert Joly, who will be compensated very well, even if his visa is not approved and he cannot take the position at the electronics retailer.

photo/Revisorweb

The Minneapolis Star-Tribune reports that Joly would receive a $6.25 million payment from the electronics retailer if the visa is denied. Joly must have an approved work permit as a French citizen coming to America and while a denial is highly unlikely, the retail giant has a guaranteed finanacial obligation to Joly.

Joly’s signing bonus was detailed by the Tribune as: $20 million. Best Buy will pay Joly a $3.5 million lump sum and a $3 million stock grant. In addition, he will be get a $6 million restricted stock award; a $3.75 million stock options award, and $3.75 million in performance share units for what he may have forfeited by leaving Carlson.

His base salary will be $1.175 million per year. That’s comparable to interim CEO G. “Mike” Mikan’s base salary rate and former CEO Brian Dunn’s last annual salary of $1.1 million. Joly will be working for his lofty bonus incentives: For the 2014 fiscal year starting Feb. 1, 2013, Joly will be eligible for an annual bonus of 200 percent to 400 percent of his base salary depending on company performance, or $2.35 million to $4.7 million.

There is a battle over Best Buy, especially after the massive layoff in July, as Best Buy founder Richard Schulze is attempting to buy the company back and install his own CEO, install ‘his vision’ and put the company back on track.

If that happens Joly would get a severance of two times his annual salary plus a target bonus, a pro-rated annual bonus based on the company’s actual performance, and his performance share units would be paid out.

Good luck Best Buy.

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About the Author

- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

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