When reading the Forbes colleague Nathan Vardi report on the failure of the Julian day of activity at Radio Shack, which comes on the heels of a decline in the first quarter profits, 30% was I have reminded I in the year 2009 about the false hope a history, which often comes with the setting of the so-called "Superstar" CEO.
Lead high-calibre executives with impressive pedigrees as the day before the election of the billionaire Edward Lampert, Kmart out of bankruptcy, prove often irresistible for Board members. But struggling companies have usually to lucrative compensation packages lure executives and after initial enthusiasm, frequently offer the returns for Sharheolders not measure. (See "superstar CEOs caution.")
The $ 21.4 million in cash and Radio Shack day has options, certainly if under this category forked as the Executive may 16 with the chain still struggling to compete will drive buy and Wal-Mart in a crowded company against larger rivals such as best. It is not quite the enormous package that Home Depot liquidation payment Robert Nardelli in an often-mentioned case of the compensation game, but for a company that earned gone the only US$ 35.1 million in its latest quarter, which is not pocket change either.
Shares of RadioShack, in the vicinity of $35 about a year in term of the day in the summer of 2007, were at $15.98 Tuesday.
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