The Wall Street Journal this morning reports that the troubled RadioShack Corp. plans to hire Julian Day, the former CEO of Kmart and COO of Sears – before their merger – to be its new chairman/CEO.
RadioShack has been grappling with diminished profits, ethical lapses in its former CEO, and a current strategy that has it shutting down as many as 700 stores in a bid to improve productivity and profitability.
RadioShack has been grappling with diminished profits, ethical lapses in its former CEO, and a current strategy that has it shutting down as many as 700 stores in a bid to improve productivity and profitability.
- KC's View:
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The scenario at RadioShack sounds similar to the debacle that Day found when he took over Kmart…though at least he doesn’t have bankruptcy to deal with. At least, not yet.
The current WSJ report doesn’t mention what Day’s compensation package will be, though we suspect it will be ample. It isn’t like he needs the money – when he left Kmart after just 10 months in the top job, he was awarded stock options worth $94 million, in addition to his salary and roughly $3 million in assorted bonuses.
Watch him sell the whole thing to Best Buy in less than a year and walk away with another hundred million dollars.
