Sunday, December 23, 2007

Circuit City and Bonuses

Here's a good post about cutting top sales people and having to pay bonuses to senior management to get them to stay on. The basic point is that Circuit City fired its top sales people. Their sales are horrible and stock is dropping fast. They're now paying bonuses up to $1 million to keep their executive management.

Of course management isn't going into the store to sell things. It sounds like they're trying to make themselves more appealing as an acquisition target. Keep management around and someone will come along and buy. Why would you buy them unless it's for the property and maybe the brand? CompUSA is out of the picture now. Best Buy will probably rule the retail electronics business.

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