PLC What's Market Spotlight: Comparison of Chief Executive Officer Compensation Provisions, Featuring Best Buy Co., Inc. | Practical Law

PLC What's Market Spotlight: Comparison of Chief Executive Officer Compensation Provisions, Featuring Best Buy Co., Inc. | Practical Law

A spotlight on the Best Buy Co., Inc. President and Chief Executive Officer employment agreement as tracked by PLC What's Market.

PLC What's Market Spotlight: Comparison of Chief Executive Officer Compensation Provisions, Featuring Best Buy Co., Inc.

by PLC Employee Benefits & Executive Compensation and PLC Labor & Employment
Published on 11 Sep 2012USA (National/Federal)
A spotlight on the Best Buy Co., Inc. President and Chief Executive Officer employment agreement as tracked by PLC What's Market.
On August 19, 2012, Best Buy Co., Inc. filed its new President and Chief Executive Officer's employment agreement, which provides an annual base salary of $1,175,000, a signing bonus of $3.5 million and the following sign-on equity awards:
  • Fully vested common stock with an aggregate face value of $3 million on the grant date.
  • Restricted stock units with a face value of $6 million on the grant date, subject to time vesting in 36 equal monthly installments.
  • Stock options with a Black-Scholes value of $3.75 million on the grant date, subject to time vesting in four equal annual installments.
  • Performance share units with a target face value of $3.75 million on the grant date, subject to goals based on the performance of employer total shareholder return relative to the S&P 500 over a three-year period. Actual payout of the performance share units ranges from zero to 150% of target.
For the employer's 2013 fiscal year, the executive receives an annual target bonus of 200% of annual base salary (up to a maximum of at least 400% of annual base salary) and a long-term incentive award with an aggregate target value of at least $8.75 million.
To see how these compensation terms compare to those provided to other newly hired Chief Executive Officers, this PLC What's Market comparison report provides summaries of these provisions in employment agreements for the following employers:
To stay current with trends in executive employment agreements, see PLC What's Market, which includes a sampling of recent executive employment agreements covering a variety of executive positions and a diverse group of employers based on size, industry and location.