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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Best Buy Shareholders Should Fire Board of Directors

Stocks in this article: BBY

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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