The Wall Street Journal reports that one day after RadioShack announced that it was turning of the lights in some 1,100 stores, closing down about one-fifth of its stores as it chases relevance and profitability, it followed up with the news that it has authorized " up to $1.5 million in retention bonuses to its top executives, in an effort to maintain its leadership through a difficult turnaround."
According to the story, "The retention payments will be provided if the executives stay at the company through March 2015. The company said it is offering the payments to give "due consideration of the skills and talent deemed critical to the company's business turnaround efforts currently underway.
"Chief Executive Joseph Magnacca, who joined the company last year, stands to gain the largest retention payment at $500,000. He was also offered a one-time bonus payment of up to $600,000 to be paid in April 2015, if certain milestones being reached in the company's turnaround. Chief Financial Officer John Feray and Troy H. Risch, executive vice president of store operations, were each offered $275,000. Chief Human Resources Officer Telvin Jeffries is eligible for $250,000. Michael S. DeFazio, senior vice president of store concepts, was offered $187,500."
According to the story, "The retention payments will be provided if the executives stay at the company through March 2015. The company said it is offering the payments to give "due consideration of the skills and talent deemed critical to the company's business turnaround efforts currently underway.
"Chief Executive Joseph Magnacca, who joined the company last year, stands to gain the largest retention payment at $500,000. He was also offered a one-time bonus payment of up to $600,000 to be paid in April 2015, if certain milestones being reached in the company's turnaround. Chief Financial Officer John Feray and Troy H. Risch, executive vice president of store operations, were each offered $275,000. Chief Human Resources Officer Telvin Jeffries is eligible for $250,000. Michael S. DeFazio, senior vice president of store concepts, was offered $187,500."
- KC's View:
-
I normally hate retention bonuses, though these don't seem as high as some I've read about in the past. And at least they don't pay out for a year. But I always think that turning around the company is what they're being paid for to begin with.
This would seem a lot more palatable to me if retention bonuses also were being offered to the people on the front lines, who have to make things work if RadioShack is to be successful.
