Compensation Essentials Jessica MullinsBest Buy and Circuit CityBest Buy (www.wikinvest.com)Compensation Objectives. Our compensation program and policies pursue the following objectives: • Reward employees for creating shareholder value and for comparative performance against external benchmarks; • Align the long-term interests of employees and shareholders; • Motivate employees to achieve short-term financial, operational, customer and employee results. results that materially contribute to the long-term, sustainable health of Best Buy; and• Maintain a flexible compensation structure that allows for potential wealth accumulation for superior growth or achievement of key strategic objectives. Circuit City (retailindustry.about.com)"To ensure we are all working in the same direction, each of us must live and breathe the Circuit City values ​​and use them to guide our actions and decisions." To further clarify this mission to all its employees, the company has outlined its corporate values ​​in detail." Respect: Our Associates are our greatest asset which we expect every Associate must demonstrate that they respect and value others for their efforts, their knowledge and the diversity they bring. Teach: we are a product of our experiences and those around us can benefit from our lessons learned. Convey to others what you value and learning. What do we gain from it? where employees are engaged and involved in the future of the company. What you do matters: use your new perspective to look, ask and learn. We never stop considering how we approach our business and ways to simplify processes. Maintain the highest integrity: We expect all of our... employees to be in good standing. I would have reviewed the performance evaluations of all employees, fired poor performers, and retained high-earning employees. • Management restructuring. Many jobs are duplicated and a decrease in the workforce would justify a decrease in management. • Close stores that are not profitable. Offer high-performing employees the option to transfer to another store. • Rationalization of management compensation and bonuses. I would review the salaries of all executives and suspend bonuses until the company is better off financially. In 2008, the CEOs of both companies received a bonus. The CEO of Best Buy received 4 million, the CEO of Circuit City received 7-8 million. If I were a newly fired employee, I would be furious. From an employee perspective, if the company performs poorly but continues to pay millions to its CEO. It is a definitive betrayal.