Now in Legal Rebels:
Posted Sep 11, 2013 05:29 pm CDT
Hubert Joly, who was hired as Best Buy’s chief executive last year, recently sold $17 million of his stock in the company, reportedly to cover divorce costs.
For some of the stock, Best Buy gave him a waiver on the two-year holding period, the Wall Street Journal (sub. req.) reports. A Best Buy spokesperson told the publication that Joly sold about 20 percent of his stake in the company.
A few weeks ago, Best Buy chairman Richard Schulze also indicated that he would be selling 20 percent of his company stock, over a six-month period. Schulze has lead an effort to take the company he founded private, the Wall Street Journal reports, and the value of Best Buy stock has more than tripled this year.
The company told the Wall Street Journal that Joly’s divorce was the only reason for his stock sales.
“This sale reflects only one thing–Mr. Joly has recently gone through a divorce and needs to sell a portion of his holdings in order to cover the costs of that unfortunate event.”
With Joly’s leadership, according to the article, Best Buy has cut in-store expenses and introduced a new floor model that offers mini-stores for brands like Samsung Electronics. The changes have yet to bring sustained revenue growth, the Wall Street Journal reports.