Best Buy Chairman Ousted Following Investigation Of Former CEOBy: Josh Wolford - May 14, 2012
Back in early April, Best Buy CEO Brian Dunn resigned amid allegations of improper conduct with a female subordinate. When the resignation was first announced, Best Buy claimed that Dunn and the board agreed on the severance in order to “address the challenges that face the company.”
Back in March, when the allegations first surfaced internally, the company hired an independent law firm to conduct an investigation into the matter. And today, Best Buy has released the results of that investigation. Apparently, former CEO Dunn did violate company policy, but he didn’t misuse company resources.
The CEO violated Company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment.
The CEO’s relationship with the female employee demonstrated extremely poor judgment and a lack of professionalism, but the inquiry revealed no misuse of Company resources. The inquiry also revealed no misuse of aircraft.
Another casualty of the investigation appears to be the current Chairman Richard Schulze. The investigation revealed that the “Chairman of the Board of Directors acted inappropriately when he failed to bring the matter to the Audit Committee of the Board of Directors in December 2011, when the allegations were first raised with him.”
“In December, when the conduct of our then-CEO was brought to my attention, I confronted him with the allegations (which he denied), told him his conduct was totally unacceptable and contrary to Best Buy’s policies and everything I, and the Company, stand for. I understand and accept the findings of the Audit Committee,” said Mr. Schulze.
At the conclusion of an annual board meeting on June 21st, current Audit Committee Chairman Hatim Tyabji will step in as Chairman of the company. Schulze will then be known as “Founder and Chairman Emeritus,” which is an honorary position. Schultze has served as an officer within the company since founding the company in 1966.