Best Buy: Dunn did not misuse company resources
An independent investigation of Brian Dunn, the ex-CEO of Best Buy, confirmed that he violated company policy by "engaging in an extremely personal relationship with a female employee that negatively impacted the work environment," but Dunn did not misuse company funds or resources during the affair.
Dunn, who is married with three sons, stepped down in April. Dunn had been CEO and director since June 2009 and was a 28-year veteran of the company.
The investigation also determined that the chairman of the board of directors, Richard Schulze, 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.
Best Buy said today that it has elected director Hatim Tyabji, former CEO of Bytemobile, to succeed Schulze as chairman, effective at the conclusion of the annual meeting in June. Tyabji, currently chairman of Best Buy’s audit committee, has served as a director since 1998.
In a statement, Schulze said that Dunn denied allegations of the affair when Schulze brought them to his attention.
"[I] told him his conduct was totally unacceptable and contrary to Best Buy’s policies and everything I, and the company, stand for,” Schulze said, adding that he understood and accepted the findings of the audit committee.
Tyabji praised Schulze’s leadership, saying that his vision "changed the landscape of American retail."
Meanwhile, Dunn has reached a separation agreement with Best Buy that comprises a previously earned bonus for 2012 ($1.14 million), vesting of previously awarded restricted stock ($2.5 million), a severance payment ($2.85 million) and an unused vacation payment ($106,742), which totals out at an estimated $6.64 million.
Shares of Best Buy were up slightly at $19.62 in early trading Monday.