Best Buy's Brian Dunn is the worst CEO of 2012, according to Bloomberg
Poor performance and scandal combined with a rough environment for big box retailers equals the worst CEO of the year.
A couple months ago, Bloomberg Businessweek did a cover story where Best Buy was characterized as a "Big Box Zombie." Now, Bloomberg is dinging former CEO Brian Dunn for being one of the people primarily responsible for the company's zombified state.
In "The Worst CEOs of 2012," Dartmouth business professor and author Sydney Finkelstein puts Dunn at the top of his third-annual list of the worst executives in the world.
Here's what the piece has to say about Dunn:
1. Brian Dunn, who resigned as chief executive of Best Buy (BBY) in April after allegations surfaced that he had an inappropriate relationship with a much younger subordinate. That's not why he's on the list, though. Declining stock price, cratering same-store sales, loss of market share to more nimble competitors, and an addiction to share buybacks that cost the company $6.4 billion with little to show for it--that's why he's on the list.
Dunn resigned in April, just over a week after an announced $1.7 billion loss prompted Best Buy to develop a plan to close 50 stores and cut 400 jobs. Though the company's rough shape by itself would've been enough to justify his ouster, days after he resigned it emerged that Dunn was carrying on an inappropriate relationship with a female staffer.
By August, profits were down 90 percent, and Best Buy's board is still in buyout talks with founder Richard Schulze, so it's not like the braintrust that succeeded Dunn has fared a whole lot better.
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