Circuit City, the nation's No. 2 electronics retailer, approved millions in cash incentives to retain its top talent following the departure of several key executives over the past year. Executive vice presidents could claim retention awards of $1 million each and senior vice presidents could get $600,000, provided they stay with the company until 2011, according a filing late Wednesday with the U.S. Securities and Exchange Commission. Those eligible for the awards at Circuit City include Bruce H. Besanko, executive vice president and chief financial officer; George D. Clark Jr., executive vice president of multichannel sales; Reginald D. Hedgebeth, general counsel; and Eric A. Jonas Jr., senior vice president of human resources, the filing said.
According to the company, "the purpose of the award is to ensure the stability of the company's leadership team." Circuit City Stores Inc. said in September that it lost $62.8 million in its second fiscal quarter, on lower overall sales and continued restructuring activity, compared with a $10 million profit a year earlier. Consumer electronics shares fell this week after Best Buy Co. implied its fourth quarter earnings would be below Wall Street expectations. The awards are effective as of Jan. 1, 2008. Awards also were approved for employees at the vice president, director and store director levels.