With assistance from crack governance specialists Glass, Lewis & Co. LLC, we’ve chosen Circuit City’s W. Alan McCollough as this month’s candidate to power down.
Circuit City Stores
CEO: W. Alan McCollough Tenure: 5 years
Total Shareholder Return*: -50.4%
Peer Index Return*: 12.8%
S&P 500 Index Return*: -15.6%
Total CEO Pay*: $12.2 million
McCollough charged up investors early in fiscal 2004 by revamping Circuit City’s Web site and relocating some poor-performing stores, prompting the retailer’s shares to rally. Then he watched Best Buy eat his lunch (and dinner) with better real estate and more-loyal customers. In January, Circuit City’s stock dropped 8% on news of lousy same-store December sales. Now 26 out of 30 analysts surveyed by Thomson First Call rate it a hold or worse.
*Data from Glass, Lewis & Co. and FactSet Research Systems for five years ending January 5, 2005.FCS