Talk about a performance review. As soon as news hit that Best Buy's chief executive, Brian Dunn, was stepping down, shares of the retailer leapt more than 3%.
The stock traded back down later in the day as the company said his departure was due to a board probe into his personal conduct and stockholders discounted the effect his leadership had on the company's prospects. "Investors see a company with structural problems, regardless of the CEO and now one undergoing leadership transition," Joe Feldman, a Telsey Advisory Group analyst, told MarketWatch.
Market reaction to a troublesome -- or inspirational -- leader is about as good as it gets when it comes to grading CEOs. When J.C. Penney announced it hired Ron Johnson from Apple last July, company shares rose more than 17%. When Yahoo fired its former CEO Carol Bartz in September, the stock rose more than 6%.
Best Buy has recently reported losses, leading to store closings and job cuts under Dunn. Employees had been withdrawing their approval of his performance as well, according to the job community site Glassdoor.com.
Dunn, 50, joined Best Buy as a VCR salesman in 1985, becoming CEO in June 2009. G. Mike Mizan, a company director, takes over as interim CEO while the company searches for a replacement.
Hunk's Move (Ad Age)
USA Today's president and publisher David Hunk becomes chairman as part of a leadership transition before leaving Gannett in September. Susie Ellwood, executive vice president and general manager at USA Today, is filling in for Hunk as Gannett looks for a permanent successor.
Family Dollar's New CFO (Retailing Today)
Mary Winston, former chief financial officer of the supermarket chain Giant Eagle, has joined the discount retailer Family Dollar as its new CFO.
More Save-A-Lot Stores (Chain Store Age)
The supermarket operator Supervalu plans to open 50 Save-A-Lot stores this year, despite a fourth-quarter loss of $424 million.
Armstrong's Opponents (WSJ)
AOL Chief Executive Tim Armstrong can't seem to shake the haters. The activist investor group Starboard Value LP said in a letter to AOL's directors it's still unsatisfied with the company's strategy and wants board seats.
Martha's Temporary Renewal (WSJ)
Media icon and former jailbird Martha Stewart is getting a temporary contract renewal to remain the chief editorial, media and content officer of Martha Stewart Living Omnimedia until June 30. Her total compensation last year fell 6.9% to $5.50 million.
Stop Thinking Viral (Ad Age)
Marketers should stop wasting their time and money trying to produce viral videos as few attempts lead to success, says Ad Age.
Buzz Around the Office
He probably found the necessary info on Google.
List of the Day: Handling a Bad Idea
You won't alienate your colleagues when you use these tricks to respond to a less-than-stellar proposal.
1. Ask for clarification, which may force the person to discover flaws in their own argument.
2. Take it seriously and try to make it work at the beginning, even if you know it won't.
3. Turn the idea down gently.
(Source: Daily Muse)