This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Best Buy Shareholders Should Fire Board of Directors

But, criticism of Joly only goes so far. He has no business as CEO of a dying retailer in need of wholesale, visionary transformation. That said, I can't blame him for taking the gig. It's a sweet deal (you can see details at the SEC Website). More power to Joly.

But less power to the Best Buy board of directors for making this move in the first place. They not only hired Joly, they waited a month for the guy's visa to clear before he could start. They waited for Hubert Joly ... seriously.

The board, with the assistance of the same search firm that helped Yahoo! nail Mayer, hired Joly. Joly reports to this board. It's their fault, not his, that he's failing.

Investors need to go after the Best Buy board. In a perfect world that makes sense, but it doesn't work that way.

Unless a major shareholder -- a big fund, a Carl Ichan, a Warren Buffett -- makes a move, there's not much investors, particularly at the retail level, can do to rattle an inept board of directors' cage.

While it's often the guy who loses his butt on 100 or 1,000 shares that gets hurt the most, these people have no recourse. Thousands of disparate shareholders, each with a few shares here or there, can't possibly band together to send the message and incite change within a company the size of Best Buy. Founder Richard Schulze is having a hard enough time and he's actually got some clout.

All you can do is write off up to $3,000 of your loss on your taxes each April.

In a perfect world, shareholders could band together -- like voters are able to do, theoretically, in American politics -- and oust a board for driving a hurting company further into the ground. But this world's not perfect. Joly and the board that hired him keep getting richer, while the rank-and-file BBY shareholder suffers.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BBY $38.10 0.00%
MSFT $43.85 0.00%
YHOO $44.28 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs