Circuit City’s CEO, possibly the last guy left who might have known how to install HDTV , stepped down yesterday. Philip J. Schoonover’s efforts to turn around the troubled electronics retailer, which included firing a bunch of long-time employees and replacing them with lower-paid workers without benefits, didn’t work out. What with the worsening economy and all, it just didn’t seem like a good time to be a CEO.
After Laying Off 3,400 Experienced Employees, Circuit City Reports 3rd Quarter Loss, Showers Top Executives With Lavish "Retention Awards"
Circuit City President Philip Schoonover responded to 3rd quarter losses of $207.3 million by unveiling a retention program that will reward each top executive with $1 million. This is the same management team that axed 3,400 experienced salespeople leading to 2nd quarter losses of $62.8 million. Circuit City has already lost three (3) top executives this year, and Schoonover warns that the future earnings will be imperiled unless his management team remains intact.