Neiman Marcus CEO Renews Contract
Neiman Marcus Group Inc. CEO Burton M. Tansky has renewed his contract for another two years. The contract, which was set to expire in October 2008, has been extended to October 2010, according to a report on WWD.com.
The contract provides that Tansky’s employment will automatically be extended for one-year periods after the term of the agreement expires unless, at least six months prior to the commencement of any one period, Tansky or the board decides it’s time for him to retire. A Securities and Exchange Commission filing, which disclosed the contract renewal, lists Tansky’s base salary at $1.3 million, the report said.
Last October, the Neiman Marcus Group formed an office of the chairman, throwing the spotlight on two veteran officials, Karen Katz and James Skinner, as leading contenders to one day succeed Tansky.
Katz is president and CEO of the Neiman Marcus Stores division. As part of the chairman’s office, she has the additional role of executive VP of the group, entailing responsibilities for strategy, business development and marketing.
Skinner, senior VP and CFO, is included in the office of the chairman. He is also executive VP and CFO of the group, with responsibility for information services.
Tansky, who has been at the helm of the high-end retailer since the early 1990s, also serves as chairman and president of the corporation.
Circuit City quarterly loss widens
RICHMOND, Va. Circuit City’s financial troubles continue, as the company today reported a wider net loss and a sales decrease for the third quarter.
The company reported that net loss from continuing operations for the quarter totaled $208 million, or $1.26 per share, compared to a net loss of $19.9 million, or 12 cents per share, for the third quarter of fiscal 2007.
For the third quarter, the company reported that net sales decreased 3.1% to $2.96 billion from $3.06 billion in the same period last year, with consolidated comparable-store sales decreasing 5.6%. Comparable-store sales increased 5.2% for the third quarter 2006.
“We are very dissatisfied with our third quarter results,” said Philip Schoonover, chairman, president and ceo of Circuit City Stores. “We underestimated the financial impact from the disruption of our transformation work, which contributed to lower close rates, reduced attachments of higher margin accessories and firedog services and lower extended warranty net sales as compared with the prior year. As a result, we are reporting lower sales and higher net losses in the quarter than last year’s third quarter.
Best Buy names human capital evp
MINNEAPOLIS Best Buy Thursday announced that John Pershing has been named evp of human capital for the corporation.
Pershing will be in charge of recruiting, training, employee relations and employee development for about 140,000 employees at Best Buy’s operations around the world. The company’s legal department also will report to him. He will report to Brad Anderson, Best Buy’s vice chairman and ceo. His appointment was effective Dec. 11.
“John is an engaging and energetic leader who brings a valued combination of field experience and human resources experience to his new role,” said Anderson. “He is a champion of the unique culture that we have built at Best Buy. John understands how the ecosystems in which our employees work must be continually adapted so that we create relevant experiences for our customers and build great relationships with them.”
Pershing joined Best Buy in 1989 as a retail manager and steadily advanced to positions of increasing responsibility. In 1999, Pershing was named divisional manager, responsible for loss prevention. He was promoted to vp of retail operations for Musicland, a former Best Buy company, in 2002. In 2005, Pershing took on a new assignment as vp of organizational alignment and the corporate transformation efforts necessary to roll out the company’s customer-centric business strategy.