Is the Departure of RadioShack Corporation's Director a Good Sign?

There have been numerous leadership positions vacated over the last year at  RadioShack (NYSE: RSH  ) , and the latest comes from director Thomas G. Plaskett. He recently announced retirement for personal reasons at age 69; he has served on the board of RadioShack since 1986. This news also went hand in hand with an updated compensation plan for executives at the company.

Just how much do incentives matter?
"Never, ever, think about something else when you should be thinking about the power of incentives."
-- Charlie Munger

As investing legend Charlie Munger points out, the updated incentives certainly do matter. These new incentives will be 50% weighted toward hitting an earnings before interest, taxes, and depreciation target. The other 50% will come from achieving certain strategic initiatives.

Final takeaway
In the video below, Motley Fool Analyst Blake Bos discusses Plaskett's departure and the new incentive structure to let investors know just what it means to RadioShack.

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