Sure, Circuit City may have announced a wider than expected Q3 loss, blaming it on ongoing store reorganization and monstrous sales declines. And, sure the CEO is “very dissatisfied.”
But don’t feel too bad for the top brass. According to an SEC filing, the company’s board approved retention awards of $1 million for executive vice presidents, and $600,000 for senior vice presidents to (get this) “ensure the stability of the company’s leadership team by providing an incentive.”
Clearly, they’re worth it, right? Sure. Why not? It’s just the shareholders that get screwed. No big deal.
Three days after Best Buy reported that Q3 profit rocketed 52%, Circuit City’s losses skyrocketed to $207.3 million, or $1.26 per share, from a $20.4 million, or 12-cent per share loss year over year. Sales fell three percent to $2.96 billion from $3.06 billion, as same store sales slipped 5.6%.
“Clearly we are very disappointed,” said CEO Philip Schoonover. “We’re staying the course on our longer-term strategic initiatives.”
With numbers and company talent like Circuit City has, aren’t they worth the incentives? Any remaining shareholders have got to be thrilled, which leaves me to wonder. Why would any one hold this stock?
It’s absolute genius… Send a company to its grave, and be handsomely rewarded.