Remain calm, investors, shoppers, and employees of Best Buy. Okay, yes, Best Buy CEO Hubert Joly sold half of the shares in the company that he owns that are vested and that he’s legally allowed to sell, but that’s just about his personal investment choices, not meant as a statement about the future of the company. Hey, why is the stock price falling?
When a company officer sells $13 million worth of common stock, that does tend to get other investors’ attention. That’s enough money to buy 21,666 Oculus Rifts, not counting sales tax.
“Hubert’s sale is solely related to his desire to diversify his overall personal holdings,” a company spokesperson told the Minneapolis/St. Paul Business Journal in a statement. “He remains firmly committed to Best Buy and is excited to lead the company in this next phase. He has absolutely no plans and no desire to explore other opportunities.”
Joly is the company’s turnaround CEO, who managed to turn Best Buy from what seemed like certain death while spending its declining years as an Amazon showroom. The company not only embraced this role by price-matching competitors, but by turning its massive store spaces into gadget food courts, where a wide variety of brands are available, and brands like Samsung and Sony have their own mini-stores that let the brands decide what “the Sony experience” for customers should be.
In the regulatory filing, Best Buy assures investors that Joly still has stock well over the minimum he’s required to own, which includes another $16.3 million in common stock that he could sell, and $24 million in stock options that will be worth more if the company’s health and sales improve.
Best Buy CEO Hubert Joly sells $13M worth of stock [MSP Business Journal]
Best Buy Shares Decline After CEO Joly Reduces Stake by 44% [Bloomberg News]
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES [PDF]
by Laura Northrup via Consumerist
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