Best Buy's New CEO Signing Bonus: $20M

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No wonder these idiots are in so much trouble financially. The $20M signing bonus is nothing compared to the fact that, if this guy can't get a visa to take the CEO position (he's French), he still gets $6.5M. What the!?!?! :eek:

Signing bonus: $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.

If Joly, a French citizen, is unable to obtain work authorization in the United States to enable him to join Best Buy, he would be eligible for a $6.25 million payment from Best Buy.
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What the hell?

"Will you take over our company and run as CEO, we need a fresh new direction as we are hemorrhaging money?", "Of course", "we couldn't get you a Sterling silver pen, or a Rolex for joining us, so here is $20 mil in various forms for your troubles, and taking 5 minutes to sign a contract".

Holy s#!t, they didn't even bother checking if he could work in the country, and he will get a few mil if he can't, maybe he's hoping for it to fall through, since he will get more than the initial lump sum?
 
They can hire me for much less and I know I would do a much better job :D
 
I don't see why everyone is so upset of him getting awarded so little money. We're talking about the profits from two Monster HDMI cables, an iPad, and one phone contract.
 
Absentee said:
Well, there goes the 12 million in profit. Now they're in the red.
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Well only $3 million in cash, the rest is stock based stuff that BB knows wont be worth shit after a while anyways. They do need serious help but pay 1/3 of your revenues for that help isnt the way to get your company straightened out.

The advice we list here all the time is actually good advice but the ones in charge wont listen until its too late. I really do see BB being the electronics department in WalMart in the future.
 
If only I was paid for potentially taking jobs. "Sorry buddy, can't move there...how about that 50k you promised me?"
 
Sounds like buyout strategy to me. They make the buyout more attractive by appealing to those that will find Joly an attractive asset.

As for Joly, he could be in a risky position where there is practically equal chance of being praised or vilified. Whatever he was getting paid before, I would have asked for double to to take that position.
 
Before it was a joke, but now it's just sad. If America keeps this up, they'll never get out of the hole.
 
chockomonkey said:
uhh, thanks? :cool:
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I think the point is that CEOs don't generally mess up their companies because they're often the best of the best in their industry when it comes to business leadership. The payment is high because shareholders feel they need to offer the salaries in question to keep the talent they put into the big chair from going to a company that offers them more money. Not realizing that might mean you're worldview doesn't take into account anything but the popularized failures of a few or that your brain has been eaten by a zombie.
 
SkribbelKat said:
I think the point is that CEOs don't generally mess up their companies because they're often the best of the best in their industry when it comes to business leadership. The payment is high because shareholders feel they need to offer the salaries in question to keep the talent they put into the big chair from going to a company that offers them more money. Not realizing that might mean you're worldview doesn't take into account anything but the popularized failures of a few or that your brain has been eaten by a zombie.
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Wow. QFT. Thanks for elaborating when I was too lazy to do so. But that is exactly what I meant, but I didn't want to start a flame fest. But since SK said it and not me, make sure you point the nozzle towards him. :)
 
SkribbelKat said:
I think the point is that CEOs don't generally mess up their companies because they're often the best of the best in their industry when it comes to business leadership. The payment is high because shareholders feel they need to offer the salaries in question to keep the talent they put into the big chair from going to a company that offers them more money. Not realizing that might mean you're worldview doesn't take into account anything but the popularized failures of a few or that your brain has been eaten by a zombie.
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Damnit, i knew i shouldn't have let that zombie feast on my brain :(
 
If they are still around in a few months they'll probably give him another 20M bonus to leave the company too.
 
BoogerBomb said:
Well only $3 million in cash, the rest is stock based stuff that BB knows wont be worth shit after a while anyways. They do need serious help but pay 1/3 of your revenues for that help isnt the way to get your company straightened out.

The advice we list here all the time is actually good advice but the ones in charge wont listen until its too late. I really do see BB being the electronics department in WalMart in the future.
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He get's 6.5 million if he can't take the job due to Immigration laws, they signed him in without even doing a bloody background check.
 
SkribbelKat said:
I think the point is that CEOs don't generally mess up their companies because they're often the best of the best in their industry when it comes to business leadership. The payment is high because shareholders feel they need to offer the salaries in question to keep the talent they put into the big chair from going to a company that offers them more money. Not realizing that might mean you're worldview doesn't take into account anything but the popularized failures of a few or that your brain has been eaten by a zombie.
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I could point you to a herd of CEOs on Wall Street and in Detroit that are anything but fine human beings, who ran their companies in the ground and got bonuses and bailouts for their lack of knowledge and sense. And they as for being the best, nah, it is always about being friends with people. Most of those clowns are on each other's boards and vote each other raises year in and out.

Why do NCAA football coaches get insane pay and benefits packages? Because people are dumb enough to think that it is important.
 
chockomonkey said:
Damnit, i knew i shouldn't have let that zombie feast on my brain :(
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It's okay. It happened to me too. The good news is that when the zombies rise, we won't have anything to worry about since they'll be after all those other people. :)
 
Skripka said:
Why do NCAA football coaches get insane pay and benefits packages? Because people are dumb enough to think that it is important.
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Why does the NCAA even care about football coaches? Aren't they doing the whole equality and civil liberties thing?
 
:confused: :eek:
Contingencies: If Joly is terminated in a change of control (for example, if founder and former CEO Richard Schulze succeeds in his buyout plan), 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.
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Wow....there's some jobs you usually have to do a 90 probationary period to see if you can actually do the work and fit in and all that.....

With this CEO gig lets Say Schulze does succeed in his buyout...."Oops, sorry Joly, you did a great job as CEO these last two months, so here is millions of dollars for your hard work during those two months. He actually benefits more if he does not get the job, or if the job is short lived, rather than staying on for several years. :confused:

Doesn't it make sense that BEFORE giving these lavish bonuses and guaranteed stock options and million dollar salary, you actually have to IMPROVE profits or do something worthwhile for lets say a year.....you get a reasonable base salary of 500k......then and ONLY then if you stay with the company for a year with marked levels of improvement, THEN you get the 1000% bonus and stock and blah blah blah. It doesn't make sense why they give all the money away as soon as you sign the contract......let's see some actual work before handing out millions.
 
drdoug99 said:
:confused: :eek:


Wow....there's some jobs you usually have to do a 90 probationary period to see if you can actually do the work and fit in and all that.....

With this CEO gig lets Say Schulze does succeed in his buyout...."Oops, sorry Joly, you did a great job as CEO these last two months, so here is millions of dollars for your hard work during those two months. He actually benefits more if he does not get the job, or if the job is short lived, rather than staying on for several years. :confused:

Doesn't it make sense that BEFORE giving these lavish bonuses and guaranteed stock options and million dollar salary, you actually have to IMPROVE profits or do something worthwhile for lets say a year.....you get a reasonable base salary of 500k......then and ONLY then if you stay with the company for a year with marked levels of improvement, THEN you get the 1000% bonus and stock and blah blah blah. It doesn't make sense why they give all the money away as soon as you sign the contract......let's see some actual work before handing out millions.
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That'll never happen because of salary competition from other companies.
 
I think one reason many companies are ran so poorly is because CEOs don't plan on staying a long time. Management is short-sighted. You pay the CEOs obscene amounts of money, and they do what they can to fluff up the company in the short term, by compromising the company's future.

They give the CEOs restricted stock to try to mitigate this situation, but it's just too little.
 
SkribbelKat said:
I think the point is that CEOs don't generally mess up their companies because they're often the best of the best in their industry when it comes to business leadership. The payment is high because shareholders feel they need to offer the salaries in question to keep the talent they put into the big chair from going to a company that offers them more money. Not realizing that might mean you're worldview doesn't take into account anything but the popularized failures of a few or that your brain has been eaten by a zombie.
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While true, these signing bonuses seem ridiculous, and I mean all of them, ones in football, or whatever else. When they fail to deliver, they walk away with millions. They should get stocks in their company so that they have to make it better, and if it's worst they shouldn't get jack shit.

I think that would lessen the idiocy that was popularize, because it would more or less make them do a good job or they get nothing.
 
I dont even know where to begin with how fucked up this world is.

I hope Best Buy rots in shit.
 
pothb said:
While true, these signing bonuses seem ridiculous, and I mean all of them, ones in football, or whatever else. When they fail to deliver, they walk away with millions. They should get stocks in their company so that they have to make it better, and if it's worst they shouldn't get jack shit.

I think that would lessen the idiocy that was popularize, because it would more or less make them do a good job or they get nothing.
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That'd work if all companies agreed to operate by the same rules or were regulated. Once one corporation does something more to get someone better from another company, everyone else will too. Corporations are, in a lot of cases, competing to get C-level management with other corporations so the packages they offer are a necessity to attract interested parties.

Also, though the average person might consider these salaries crazy, the people getting them are accustomed to thinking in millions or billions of dollars. They treat their salaries the same way you treat yours, as just another paycheck. Their benefits packages are just that, ho-hum benefits. It's all a matter of perspective.
 
I hope BB doesnt go out of buisness. My current employer send me there as a rep to train associates and so on. Im a bit worried.
I do think they are n00bs though. Other day I had to help a an associate with a card in his hand for a customer who wanted a replacement and he didnt even know it was a video card despite the VGA and DVI connectors......
 
XamediX said:
Yea.... good luck with that worldview. Haha. :)
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CEO pay doesn't match the results. Worse, there's an inverse correlation between results and pay. The more they pay a CEO the worse the results tend to be.
 
$3.5 million cash. The rest is incentive based. Typical of many high level CEOs brought into large corps. Keep the carrot on the stick in front of him to raise the stock price for the shareholders (and himself). Believe me he can't cash all his stock in tomorrow, thats not how this works... Options and restricted stock isn't the same as cash compensation at all.
 
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