It seems that no matter how hard Best Buy (NYSE:BBY) tries, the big-box consumer electronics retailer just can’t catch a break. After months of drama, the company was hit with yet another blow when an ongoing investigation unearthed proof that the company’s founder, Richard Schulze, failed to act appropriately in the scandal that led to resignation of former CEO Brian Dunn.
Schulze stepped down as Best Buy chairman of the board on Saturday. The company has elected Hatim Tyabji to succeed Schulze. Tyabji, currently chairman of the audit committee, has served as a director since 1998. Schulze will serve out the remainder of his term through June 2013. After that time, he will then hold the honorary position of founder and chairman emeritus.
Schulze commented on the matter in a company press statement released Monday.
“In December, when the conduct of our then-CEO was brought to my attention, I confronted him with the allegations (which he denied), told him his conduct was totally unacceptable and contrary to Best Buy’s policies and everything I, and the Company, stand for,” Schulze said. “I understand and accept the findings of the Audit Committee.”
In addition to electing a new chairman, the board’s independent directors have recommended every director should stand for reelection on an annual basis.
“As a Board, we support the proposal for annual elections as an additional demonstration of our commitment to strong corporate governance practices,” Tyabji said. “Each of us — with no exceptions — will be subject to approval by the shareholders on an annual basis.”