Best Buy Travel Bias Influences New Hire for President $BBY $GOOG $EBAY $MOT $EXPE

Image representing Scott Durchslag as depicted...

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Best Buy (NYSE:BBY) finished up some outstanding business and hired a new President of the e-commerce and on-line divisions. Scott Durchslag former president of online travel company Expedia (Nasdaq:EXPE). He is also a former partner at McKinsey & Co. and has previously served as Skype’s chief operating officer prior to its sale by EBay (Nasdaq:EBAY) as well as a vice president at Motorola Inc. which partly has been swallowed by Google (Nasdaq:GOOG). Resume looks good.

But here is the bias to be concerned over. Hubert Joly the current President, CEO and Director is also from the online travel business. CW Travel Holdings long based in Minneapolis is also a major player in the travel business.  While corporations need to make sure the fit in the executive suite works you need to be concerned about too much background commonality.

The next question becomes: What do you do with the big boxes? The online guys will need big money to spend and the bricks and mortar environment is clearly not cutting it.

George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti

Best Buy Sticks with a Homey for CEO. Not exactly the Big Bold Bet. $BBY $AMZN $DJTRET $RTH

Image representing Best Buy as depicted in Cru...

Image via CrunchBase

Best Buy (NYSE:BBY) announced a new CEO with a supposedly mid range pay package. Mid range that is for a company of Best Buy’s size. Brand new CEO Hubert Joly scored a pay package valued around $32 million over three years to entice him to the problematic consumer-electronics chain.

OK so Best buy is not hot and the opportunity to run it may not be the best piece of sugar out there. However, it does put to rest the lack of CEO quandary. More telling is Hubert Joly has a history of working with problematic companies. He has more recently been running Carlson a global hospitality company and or Carlson Travel. This puts him squarely into the Minneapolis Business milieu, which quite frankly is not that big.

So here is the inferred strategy from the board of directors by the numbers:

  1. The corporation has a problem
  2. We blow off the chief problem maker
  3. We hire a new guy with no retail experience
  4. But the new no retail guy is good at stabilizing companies
  5. Why do this?
  6. Unstable companies do not attract super-star candidates
  7. Unstable companies do not attract premium paying take over offers
  8. Board is still uncertain about what course to take in the future
  9. Board is still uncertain how the market cookie will crumble
  10. But in the meantime stability guy fixes what can be fixed.
  11. Also hire lots of consultants and investment bankers to get advice and unlock value.
  12. This is not the time to hire the retail equivalent of Marisa Meyer
  13. The retail equivalent of Marissa Meyer is probably Jeff Bezos.
  14. This means a take-over by Amazon (Nasdaq:AMZN) so we need to clean up the joint.
  15. In the mean time we need to sell some big-ass TV’s.

George Gutowski writes from a caveat emptor perspective.