Please ensure Javascript is enabled for purposes of website accessibility

Best Buy Allows CEO To Keep Her Job Following Misconduct Allegations

By Rich Smith – Feb 5, 2020 at 1:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Audit Committee keeps mum on the details.

In December, an anonymous letter addressed to the Board of Directors of electronics retailer Best Buy (BBY -2.67%) put its CEO's job at risk.

According to news sources, the letter in question alleged that Best Buy CEO Corie Barry had engaged in an inappropriate romantic relationship with a fellow executive prior to winning election as CEO in June 2019.  

CEO Corie Barry with Best Buy staff

Image source: Best Buy.

"The Board takes allegations of misconduct seriously regardless of who is the subject," explained Best Buy's Audit Committee in a statement. "When the Board received an anonymous letter regarding Corie Barry, the Audit Committee immediately retained outside legal counsel, Sidley Austin LLP, to conduct an independent review. Ms. Barry fully cooperated with the review, which has now concluded. The Board supports the continued leadership of the Company by Ms. Barry. To preserve the confidentiality and integrity of the process, the Board will have no further comment."

That was the sum total of Best Buy's statement on the matter: An allegation was made, the allegation was investigated, and Barry gets to keep her job. Granted, this statement falls somewhat short of an exoneration, and provides little details on who did what, when (and to whom) -- but for investors that's probably not really the point.

The real point is that, since Barry took over Best Buy eight months ago, Best Buy's stock is up an astounding 44%, and trading at some of the highest prices it's seen in the last five years. No one wants this particular boat rocked, and the fact that Barry has now been confirmed in her position helps to ensure that Best Buy's growth story should continue unimpeded.

Best Buy stock is up 3.3% as of 1:20 p.m. EST in response.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
BBY
$63.34 (-2.67%) $-1.74

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.