Best Buy this week announced that its Board of Directors appointed Hubert Joly, former head of a global hospitality and travel company, as the chain's President and Chief Executive Officer. In addition to inheriting the burdens of a struggling electronics chain, Joly will receive what some consider to be a king's ransom worth up to tens of millions of dollars over the next few years.
According to a report in The Wall Street Journal, Joly's pay package may be worth as much as $32 million over three years, or two and a half times what the company earned last quarter. He'll be paid a base salary of $1.175 million annually, plus an annual long-term cash award of $8.75 million or more, WSJ says.
"The cash compensation is squarely in the mid-range for a CEO of a company the size of Best Buy," a company spokesman told WSJ. "This packages was developed in consultation with leading search and compensation firms and is in line with best practice for Fortune 50 companies."
As much compensation as Joly is set to receive, he'll be worth every penny if he can somehow reverse Best Buy's fortunes. A day after announcing Joly's hiring, Best Buy revealed its second quarter financial results, noting a gut wrenching 91 percent drop in quarterly profit. Earnings in Q2 plummeted to $12 million from $128 million a year prior.