Electronics seller RadioShack (RSH) has filled its top corporate post, hiring retail-industry executive Julian Day to serve as its chairman and CEO.
Day will take over from Chief Operating Officer Claire Babrowski, who has been acting CEO. RadioShack has been looking for a permanent chief since David Edmondson resigned in February after admitting that he had overstated his educational background on his resume.
Shares of RadioShack surged on the news, rising $2.20, or 16%, to $15.96. Volume was much heavier than normal.
With Day at the helm, RadioShack has a leader who's past experience includes work with Safeway (SWY - Get Report), Sears and Kmart, where he was named CEO in 2003. The latter two are now part of what is Sears Holdings (SHLD - Get Report)."Julian has a deep understanding of the retail industry in North America, and he is widely recognized for his ability to create value for shareholders at the companies where he has served," said Thomas Plaskett, presiding director for RadioShack's board. Prior to joining Kmart, Day spent two years at Sears, first as chief financial officer and then as chief operating officer. Before Sears, he was executive vice president and chief financial officer for Safeway. RadioShack, based in Fort Worth, Texas, said Day will receive a base salary of $1 million a year and an options package. He will also be eligible to take part in the company's existing bonus plans.