Best Buy Co. (BBY), the consumer- electronics retailer shunning a takeover attempt by its founder, will pay its new Chief Executive Officer Hubert Joly a base annual salary of $1.175 million.
Joly will be eligible for a fiscal 2014 bonus of at least $8.75 million, the Richfield, Minnesota-based company said today in a regulatory filing. Best Buy will give Joly $3.5 million and various stock awards to cover compensation he forfeited by leaving his previous employer.
The 53-year-old Joly, CEO of hotel operator Carlson Cos., will start at Best Buy in September, replacing interim CEO Mike Mikan. Richard Schulze, who had been chairman, left Best Buy in June and is trying to purchase the company for as much as $9.5 billion with the help of private-equity partners.
Best Buy reported second-quarter profit today that trailed analysts’ estimates and suspended its earnings forecast as sales of computers and televisions dropped. Net income fell 91 percent to $12 million, or 4 cents a share. Excluding certain items, profit was 20 cents a share. The average of 21 analysts’ estimates compiled by Bloomberg was 31 cents.
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