Struggling retailer Best Buy Co, which is engaged in a takeover battle with founder Richard Schulze, has chosen a new chief executive to lead the company.
The company has tapped Hubert Joly, the former head of global hospitality company Carlson and turnaround expert, as the nation’s largest consumer electronics chain’s new CEO and president.
Controversially, the French mogul will receive a payout of $6.25million, even if he cannot secure a visa to work within the states.
John Coffee, a professor at Columbia Law School, told NBC News that Joly may be assuming a risk leaving Carlson.
The corporate governance specialist added: ‘I can understand some payment but this does seem a windfall.’
A Best Buy spokesperson told NBC News: ‘This package was developed in consultation with leading search and compensation firms and is in-line with best practice for Fortune 50 companies.’
His base salary, $1.175million, is modest for a CEO, but the news organization says that his pay check could be fattened by possible stock options.
The announcement, made Monday, comes after the ailing retailer said Sunday that its offer to advance talks with company co-founder Richard Schulze on his takeover bid was rejected.
Best Buy says Joly, who is French, is expected to take over as CEO in early September when his visa is secured. Carlson, which operates such businesses as Radisson and T.G.I Friday’s, announced Sunday that Joly resigned from that company.
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