RadioShack's (NYSE: RSH) board has approved more than $1 million in retention bonuses for several executive officers, just one day after the company announced disappointing quarterly earnings and said it would be closing 1,100 stores due to plunging sales.
RadioShack this morning posted a filing with the Securities and Exchange Commission detailing promotions, raises and bonuses for top executives, including CEO Joseph C. Magnacca who will receive $500,000 should he remain with the company for another year. The board also approved a second bonus of up to $600,000 for Magnacca if he helps the struggling chain hit several turnaround targets this year.
RadioShack's CFO, head of human resources, exec-VP of store operations, and senior VP of store concepts will also each receive bonuses ranging from $187,500 to $275,000. In total, the bonuses add up to roughly $1.5 million.
The company states in the SEC filing that it decided to honor the bonuses "after giving due consideration of the skills and talent deemed critical to the Company's business turnaround efforts currently underway, the difficult business environment and the competition for skilled, talented employees."
Yesterday, RadioShack didn't seem so optimistic about the financial status of the company after losing $191.4 million in its fourth quarter and $400.2 million in its 2013 fiscal year. Despite the dramatic loses, the company maintained that its newly implemented turnaround strategy is beginning to help the chain rebound.
-See this Wall Street Journal article
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