As RadioShack Closes Stores, CEO To Get $500K Retention Bonus

Sorry guys... your store is being closed, but the CEO can now afford a new house.

Sorry guys… your store is being closed, but the CEO can now afford a new house.

While thousands of RadioShack employees got the bad news yesterday that the beleaguered electronics chain would be shuttering 1,100 stores, there are at least five Shack staffers who can not only feel secure about their jobs, but who will each be getting hundreds of thousands of dollars just to stick around.

In a new filing [PDF] with the Securities and Exchange Commission, the Texas-based retailer stated that CEO Joe Magnacca will be the recipient of a nice $500,000 retention bonus as he tries to right the sinking ship.

And Magnacca won’t be alone. The company’s Chief Financial Officer, head of Human Resources, the exec. VP of Store Operations, and the senior VP of something described as “Store Concepts” will each receive bonuses ranging from $187,500 to $275,000. In total, the bonuses add up to $1.4875 million.

The company states 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.”

In order to get the bonuses though, each of these execs must stay with the Shack through March 1 of 2015.

To entice Magnacca into doing more than just riding out the next year in order to cash that bonus check, the company is tempting him with the dangled carrot of another $600,000 based on “the achievement of performance based strategic initiatives relating to the fiscal year 2015 turnaround plan.”

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  1. CommonC3nts says:

    Seems fair to have a retention bonus to keep people around, but why does it have to so much more than the average Radio Shack wage???

  2. cregister says:

    Competition for skilled employees? I had to show the employee at my local Radio Shack what a power strip was. Ultimately I had to explain it by saying it was that thing you plug into the wall that gives you extra outlets, and I still had to find it myself.

    • MathManv2point0 says:

      Someone emailed me yesterday asking what our telecopy number was. Initially I was fairly certain it was the fax they were looking for but I still had not heard that word before. Definitely not the same as your “power strip” example. Maybe you should have asked for a surge protector. However, that could REALLY have confused them since not all power strips are surge protectors.

  3. Snarkapus says:

    “The company states 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.””

    And here silly me thinks that they’re the ones who got Radio Shack in the mass. Maybe they could use some fresh thinking in those positions.