Best Buy’s internal probe has uncovered that Brian Dunn, the former chief executive of the electronic retailer was engaged in an inappropriate relationship with a female employee.
Dunn had resigned from the top job on April 10 while the board investigated whether he misused company resources to pursue a relationship with a 29-year-old female subordinate.
The scrutiny concluded that Dunn "developed a close personal relationship with a subordinate that negatively impacted the work environment" and "violated company policy."
The electronic giant has agreed to a hefty $6.6 million payoff for Dunn. This includes a $2.85 million severance payment, a previously earned bonus of $1.14 million for fiscal 2012 stock grants valued at more than $2.54 million and reimbursement of $106,742 for unused vacation time.
Findings of the probe
Meanwhile the duo alleged that they shared a very close relationship which was not romantic.
Investigators conducted interviews and rummaged through employee's computers and company phone records. The company board also scrutinized documents and related data.
They determined that the couple often met in Dunn's office and in conference rooms and had private meetings outside Best Buy's premises.
The probe found Dunn bestowed favors on the woman, including tickets to concerts and sporting events. It was learnt that Dunn called the lady 224 times during two overseas business trips last year.
“Several photographs were discovered on the CEO’s personal cell phone that contained messages expressing affection, one of which included the female employee’s initials,” the report said.
$6.6 million of exit money
Though Dunn exhibited "extremely poor judgment and a lack of professionalism," the report found he did not squander company resources, including use of the company jet, during course of the alleged affair.
Hence, the electronic giant has agreed to a hefty $6.6 million payoff for Dunn. This includes a $2.85 million severance payment, a previously earned bonus of $1.14 million for fiscal 2012 stock grants valued at more than $2.54 million and reimbursement of $106,742 for unused vacation time.
The only catch for the disgraced CEO is that he must abide with Best Buy's policy of not working for a competitor for three years.