Circuit City, the number 2 electronics retailer behind Best Buy, is reporting 3rd quarter losses to the tune of $207.3 million and on Friday, December 21, 2007, their stock fell to $4.75, a 52-week low.
They have a plan to try and turn things around, and to help retain their top executives (they’ve already lost 3 this year) a bonus plan has been announced to award up to $1 million to executive vice presidents, and up to $600k for senior vice presidents if they agree to stay with the company until 2011.
I’m personally a little torn when I read this news…these are the same executives that allowed 3,400 sales people to be laid off in March, 2007, so that they could be replaced by people who would work for less. Sounds like a bad move, losing so many experienced people. Maybe some were re-hired for a lower wage? Not really sure.
On the flip side, a struggling company needs to project stability starting at the top and if Circuit City president Philip Schoonover believes these executives are crucial in helping turn the company around, obviously he’ll want to retain them and big bonuses will help.
Part of their plan for 2008 includes opening 60+ new stores across the US, so if you don’t live near a Circuit City right now there’s a chance you will soon.
[Via Consumerist]
Filed under: tech
