Best Buy Business Strategy
I've read about Best Buy in the news twice in the last week. The two news stories are interesting to look at together.
Story One:
Former Best Buy information-technology workers terminated during a restructuring earlier this year claim in a lawsuit filed Wednesday that they actually lost their jobs because the consumer electronics giant thought they were too old.Story Two:
...Sixty-eight percent of those who lost their jobs were over 40, even though the information-technology employees tended to be younger, said Stephen Snyder, lead attorney for the workers.
...Best Buy also affirmed that the claims relate to the company's recent restructuring of its information-technology operations, including the outsourcing of numerous functions to Accenture, a New York-based consulting firm that also is a third-party manager of corporate information systems.
Best Buy announced in April that the move would mean layoffs for about 130 employees and require another 650 workers to follow their jobs to Accenture.
Last week, Best Buy Chairman Richard Schulze exercised 240,000 stock options worth $11.8 million. In addition, Schulze made a gift of 164,339 shares he indirectly held...I don't think this will make the laid-off old people any happier.
Other Best Buy executives have made option exercises and stock sales recently. Executive Vice President Brian Dunn exercised 32,343 shares worth about $1.5 million on Nov. 11; Executive Vice President Michael London exercised 20,000 shares worth about $709,000 on Nov. 10; longtime board member Elliot Kaplan exercised 30,000 shares worth about $1.7 million on Nov. 8, Michael Keskey, president of U.S. retail stores, exercised 367,293 shares and sold 397,293 shares worth more than $14.1 million Nov. 1-3; and longtime director Allen Lenzmeier exercised 225,000 shares and sold 255,000 shares worth more than $12.7 million Nov. 1-5.
