Best Buy's founder Richard Schulze quits over CEO Brian Dunn's secret affair
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Tuesday 15 May 2012
The founder of Best Buy, the biggest electronics retailer on the American high street, lost his job last night after it was revealed that he had kept secret the fact that his chief executive was having "an extremely close personal relationship" with a female employee.
Richard Schulze quit as chairman a month after the chief executive, Brian Dunn, also quit for violations of the company's ethics policy.
Mr Schulze said in a statement released by the company: "In December, when the conduct of our then-CEO was brought to my attention, I confronted him with the allegations (which he denied), told him his conduct was totally unacceptable and contrary to Best Buy's policies and everything I, and the company, stand for." However, he did not bring it to the attention of the board. "I understand and accept the findings of the audit committee," he said.
Mr Dunn, who left the company on 10 April, will receive a severance payment of $2.85m.
He will also get his previously earned bonus of $1.14m for 2012, and previously awarded shares valued at $2.54m.
Mr Schulze will become chairman emeritus, an honorary position, and serve out his term as director until June 2013, the company said.
Until a few years ago, America's largest consumer electronics retailer was the place to go for TVs, cameras and gadgets. But the chain has suffered in the economic downturn and is widely criticised for not being quick to respond to growing competition and changing shopping habits.
A short-lived joint venture with Carphone Warehouse, which saw 11 Best Buy stores open in the UK, ended last year following losses of at least £83m.
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
The magicians using online collaboration to push boundaries
lifeIt takes year-long dedication to get Selfridges ready for 25 December. And they're already working on plans for 2015...
Jennifer Lawrence attacks mass media again over body image
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Ian Watkins: Paedophile Lostprophets singer sentenced to 35 years for child sex offences, as judge labels him a 'dangerous sexual predator'
- 4 Christmas comes early: Justin Bieber announces he's 'retiring from music'
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...
£25000 - £35000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Implementation...
£50000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...