Thursday, June 08, 2006
CEO bites dog.
Performance counts, as all of those CEOs who elect to earn a $1 in salary will tell you. But here comes a new twist. W. Alan McCollough, departing CEO of Circuit City, says he will forfeit long-term compensation worth about $6.9 million. Part of that includes a grant of 400,000 stock options (worth approximately $3.6 million). The stock options will be repurposed for “Chairman's Awards,” and given to those individuals who have the potential to make significant contributions to improving Circuit City’s performance.
Like the folks at BP say, “It’s a start.”
Speaking of performance, Mr. McCollough’s was dismal. In his five year tenure at Circuit City, shareholder return dropped 50.4 percent and S&P 500 Index Return slipped 15.6 percent.