CompUSA Invented 53 Week Year So Execs Could Cash Big Bonuses?

CompUSA had a 53 week year last year, allowing upper management to reap large bonus checks, according to a company insider.

Most places have their quarters that run in: 4, 5, 4 (13 weeks = 1 Quarter). Last year CompUSA had (4, 5, 5). = 53 weeks/ year. Yes CompUSA had a 53 week year.. Not sure how, but the upper management got some FATTTT BONUSESSS $$$$$$… B/ they hit their bases #’s they needed to.

We’re not even sure how to begin substantiating this statement. Perusing annual reports or something, we suppose. Policies like this might be part of the reason why the company is imploding. — BEN POPKEN

UPDATE: Readers are noting this is a fairly standard practice in accounting and finance. No wonder we put a question mark in the headline.

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  1. SexCpotatoes says:

    Galactic-sized pay is why companies have to rape workers and customers hard to survive. How is this news? Sure, they took an extra week on the year, maybe got to make an easy sales target, and rake in an extra 1-10 million per exec, but really, that money would’ve kept those “under-performing high rent” stores open for maybe a year longer. Better that they grab the bonuses and screw the workers out of jobs that’ll buy Smack Ramen to feed their families, than have some other know-nothing yahoos come along and reap the cash rewards of cutting working men and women off at the knees later.

    Just another “golden urinal,” move it along folks, nothing to see here…

  2. capnfive says:

    Well, good luck with the annual reports; CompUSA hasn’t been a registered company since early 2000.

    As far as a 53 week year… there isn’t neccessarily anything sinister there. Lots of public companies use “fiscal” years where each period will end of a Saturday. That’s the “4,5,4″, like you discussed.

    Here’s the problem: That also results in an even number of weeks every year. 52 weeks X 7 days = 364 days per year. For clarification, a full calendar year is 365 days. That means every 6 (lets not forget leap year puts them an extra day behind) years, you’ll lose a week… unless you take a 53 week year!

  3. mikesfree says:

    Thats a pretty common thing. It happens a lot in finance.

  4. scottso says:

    Seconding what Capnfive and Mikesfree have noted, this really isn’t unusual. I could see how a disgruntled worker (must be quite a few of those I imagine) who’s not familiar with accounting conventions might not understand it, though.

    Starbucks and Ahold (Stop & Shop, Giant) are two other retail companies I can think of off the top of my head that do this.

    Generally speaking, Wall Street will adjust for the extra week to create a comparable year so that people can compare year-over-year sales properly. They know that the extra week is there and account for it.

    See:
    http://en.wikipedia.org/wiki/Leap_week_calendar
    http://financial-education.com/2007/02/14/the-5253-week-fi

  5. bluebuilder says:

    Comments above are right, this isn’t news nor unusual.

  6. Chairman-Meow says:

    Dontcha just wish you could invoke a plague of locusts, etc on their executive management?

  7. orielbean says:

    Speaking of the Golden Urinal – did anyone catch the Harvey Birdman episode where he defends the plastic surgeon and gets a partnership in the firm? That is one of my favorite episodies of all time…