Tags: RadioShack | investors | executive | pay

RadioShack Investors Reject Executive Pay for 2nd Year

Monday, 09 Jun 2014 06:36 PM

RadioShack Corp. investors rejected the company’s executive compensation for the second year in a row, signaling that shareholders are increasingly frustrated with pay levels at the struggling retail chain.

About 55 percent of votes were cast against the compensation plan in a nonbinding referendum at last week’s shareholder meeting, not counting abstaining investors, the Fort Worth, Texas-based company said Monday in a filing. That was up from 53 percent last year.

RadioShack, which reports first-quarter results tomorrow, has posted eight quarters of losses because of waning product demand and competition from Amazon.com Inc. and Wal-Mart Stores Inc. Chief Executive Officer Joe Magnacca has updated stores and brought in new leaders while seeking to close 1,100 locations to stem declines. Magnacca, who became CEO in February 2013, was paid $8.84 million last year, according to regulatory filings.

“There’s nothing that he has done that leads anybody to believe that he’s the right guy to turn this business around,” Anthony Chukumba, a New York-based analyst at BB&T Corp., said in an interview last week.

RadioShack investors are not the only ones wary of company compensation plans. Shareholders at Staples Inc. and Chipotle Mexican Grill Inc. have rejected proposals this year, while Abercrombie & Fitch Co. announced in May that it had lowered its chief executive officer’s 2013 payments by 72 percent after sales and profit fell.

RadioShack shares rose 4.8 percent to $1.54 at Monday's close in New York. The shares have dropped 41 percent this year.

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RadioShack Corp. investors rejected the company's executive compensation for the second year in a row, signaling that shareholders are increasingly frustrated with pay levels at the struggling retail chain.
RadioShack, investors, executive, pay
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2014-36-09
Monday, 09 Jun 2014 06:36 PM
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