The Best Buy Board publicly released the results of an independent investigation into personal conduct allegations involving former CEO Brian Dunn who had a "no-benefits" relationship with the employee.
The separation agreement is contained a previously earned bonus for FY 2012, vesting of previously awarded restricted stock, a severance payment and an unused vacation payment.
- Previously earned FY2012 bonus: $1,140,000.
- Previously awarded and reported restricted stock grants of 131,876 shares, valued at close of business on Friday, May 11, 2012, ($19.28 per share), totaling $2,542,569
- Severance payment of $2,850,000
- Compensation for unused vacation: $106,742
- Using the May 11, 2012, stock price for calculation, the estimated total value of the severance package is $6,639,31
When these allegations, which were unrelated to the company’s operations or financial controls, were brought to the Board’s attention, the Audit Committee immediately initiated an investigation. Prior to the completion of the investigation, Mr. Dunn resigned.
“During one four-day and one five-day trip abroad during 2011, the CEO contacted the female employee by cell phone at least 224 times, including 33 phone calls, 149 text messages, and 42 picture or video messages. In one instance, several photographs were discovered on the CEO’s personal cell phone that contained messages expressing affection, one of which included the female employee’s initials,” the report found.