The chief executive officer of one of the nation’s largest electronics chains has been forced to sell off millions of dollars in stock options in order to pay for his pending alimony settlement. The man, who held about 20 percent of the company’s overall stock offerings, sold the shares for $16.7 million in early September in order to make spousal support payments. The sale cost a massive $6.3 million fee, so CEO Hubert Joly only netted about $10 million after liquidating his holdings. Officials at the company say the man still possesses some 476,000 shares after the sale; he sold more than 451,000 in the recent buyout.
Company representatives say the firm is not in financial trouble because of the man’s decision to sell; rather, the choice was a personal matter that involved spousal support alone. Further, the man may have additional stock holdings and options that have not yet been revealed to shareholders, which should give company supporters hope for Best Buy’s financial future.
Best Buy had been experiencing flagging sales in recent years, with the advent of online retailers like Amazon and other industry competitors. Shares in the company had even continued to drop in value when Joly initially took over leadership at Best Buy, but the value of the stock has tripled since the beginning of 2013. Business analysts credit Joly’s leadership style and commitment to remedy failed efforts to take Best Buy private for the rise in stock value. In fact, the company is now back on the top performers’ list for the S&P 500 index.
If you are a business owner or leader who must pay an alimony settlement or a continued amount of spousal support, you may be required to take unorthodox steps to acquire the money you need. This could include actions like selling company stock to satisfy property division mandates. A qualified divorce attorney can help you learn more about your financial options during the property division process.
Source: fox2now.com, “Best Buy CEO dumps large stake to pay for divorce” No author given, Sep. 12, 2013