Executive compensation

Barry to earn $1.1M salary as Best Buy CEO

When Best Buy Chief Financial Officer Corie Barry takes over as CEO in June, she will get a salary bump of more than $300,000 a year.

Right now, she is making $764,423 a year, according to filings with the Securities and Exchange Commission. As CEO, the 44-year-old Barry will make a salary of $1.1 million.

Salary is not take-home pay. Best Buy’s last pay filing also showed that Barry made $2.1 million in nonequity incentive pay and also received stock options, for a total compensation package of $4.2 million.

As CEO, Barry’s bonus will be 175% of her base salary if Best Buy meets performance goals. The bonus could be higher depending on how much those goals were exceeded.

As part of her promotion package, Barry also will receive a stock award worth $5.5 million.

The package is in line with other retail companies. Current Best Buy Chief Executive Hubert Joly, Target CEO Brian Cornell and Walmart CEO Douglas McMillon all have base salaries of about $1.3 million. Macy’s CEO Jeff Gennette’s salary is $1.2 million.

With bonuses and stock awards, Joly made a total of $22.5 million in the fiscal year ended Feb. 3, 2018.

As Joly moves from CEO to executive chairman, his base salary will fall to $650,000 a year.

His bonus and stock award maximums also will fall commensurately.

The base salaries of both Barry and Joly will be prorated since the change is happening in June.

Catherine Roberts

Business survey

Chamber-backed poll finds gas-tax opposition

A statewide survey underwritten by business lobbies found “startling opposition to current legislative proposals to raise business taxes and the gas tax, and impose mandates on employers and employees.’’

The survey, sponsored by the Minnesota Chamber of Commerce and the Minnesota Business Partnership, found that Minnesota voters oppose Gov. Tim Walz’s proposed business tax increases by a nearly 2-1 margin, or 60% vs. 34%.

Two-thirds of voters oppose Walz’s 20-cent-per-gallon gas tax increase that would phase in over time. Walz has indicated a willingness to negotiate.

Walz also insists more funding is needed for roads, bridges and transit for the first time in more than a decade.

Voters also oppose a new payroll tax to fund a state-run paid-leave program by a 55%-37% margin.

“Minnesotans want our state to be affordable for families and businesses to grow and flourish,” said Doug Loon, president of the Minnesota Chamber of Commerce. “High tax rates negatively impact investment, wages, entrepreneurship, and talent retention and recruitment — the very items needed for a strong and growing economy.”

The telephone survey of 500 registered voters was conducted by Meeting Street Research in April. The margin of error was 4.4 percentage points.

Democrats in the Minnesota House released a tax plan this month that would give relief to most families but raise money overall, especially on the foreign income of Minnesota corporations.

The $1.2 billion in new revenue, which faces stiff resistance in the Republican-led Senate, largely is intended to increase the amount of state aid to school districts by 3% next year and 2% the year after that.

“Our budget restores tax fairness for Minnesota families while making significant investments,” said House Speaker Melissa Hortman.

Neal St. Anthony

Acquisitions

Streamworks buys 121 Marketing Services

Streamworks, a Blaine-based direct-mail and digital-marketing company, has acquired 121 Marketing Services Group of Rogers.

Terms were not disclosed. The 40 employees of 121 Marketing are expected to keep their jobs, according to Streamworks.

Streamworks produces and manages print, mail and fulfillment programs and related data and delivery services for the financial, health care, education, nonprofit and other clients.

Formed in 2013 through a merger of direct-mail company Action Inc. and Expedite Direct Mail, Streamworks had 2018 revenue of $20 million; with 121 Marketing, it now has a total of 150 employees.

121 Marketing, founded in 2000, provides solutions for loyalty club and membership marketing programs.

121 Marketing has been an engagement programs resource for clients in the hospitality, retail, nonprofit and financial services sectors.

The merged company will continue to operate from the Blaine and Rogers facilities.

Neal St. Anthony