Best Buy Defends Its New CEO's $32 Million Pay Package

Best Buy

Photo: Tom Pennington/Getty Images

Incoming Best Buy CEO Hubert Joly is receiving a pay package worth up to $32 million for three years, and even if the French citizen isn’t able to get a visa to work there, he’ll get $6.25 million.His annual base salary is $1.175 million, and today, Best Buy came out in defence of Joly’s compensation package.

From a report by Susanna Kim at ABC News:

Maggie Habashy, a spokeswoman for Best Buy, said in a statement that two-thirds of the amount cited by the Journal “is a one-time payment intended solely to make Mr. Joly whole for the outstanding compensation he left behind in departing Carlson, his previous employer.

… Habashy said “the amount that can accurately be described as compensation going forward is weighted approximately 90 per cent to variable incentives, the value of which will depend on how operational goals are met and movements in share price.”

The cash compensation is squarely in the mid-range for a CEO of a company the size of Best Buy,” Habashy said in the statement. “This package was developed in consultation with leading search and compensation firms and is in-line with best practice for Fortune 50 companies.”

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