Hubert Joly, Best Buy Co. Inc. CEO
Total compensation: $7,542,461 for the year ended Feb. 2, 2013
Other compensation: $6,788
Value realized on vesting shares: $3,543,077
New stock options: 700,935
Total fiscal 2013 return to shareholders: -36.5 percent
Total return for Joly since start date on Sept. 4 through Monday: 35.5 percent
Note: Joly, Best Buy’s new CEO, came over from Carlson and the package he negotiated to take the helm of the consumer electronics retailer included a base salary rate of $1,175,000, a signing bonus of $3.5 million, and shares worth $3 million on date of grant.
Much of Joly’s signing package contained equity awards in Best Buy as part of long-term incentive compensation including restricted stock that vests in 36 monthly installments that had a grant value of $6 million; stock units linked to the performance of Best Buy, which had a grant-day value of $3.75 million, and a stock-option grant that was worth $3.5 million.
In June, Best Buy shareholders rejected the company’s “Say on Pay” proposal. The company has made changes in its compensation philosophy to address shareholder concerns. The company will now rely on a greater percentage of performance-based equity incentives and less on stock options and time-based restricted stock awards. The company also hired a new compensation consultant, Frederic W. Cook.