RadioShack Announces Retirement Of Thomas G. Plaskett From Board Of Directors Company adjusts fiscal calendar and updates executive incentive program
FORT WORTH, Texas, Nov. 18, 2013 /PRNewswire/ -- RadioShack Corporation (NYSE: RSH) today announced the retirement of Thomas G. Plaskett from the Company's Board of Directors. Mr. Plaskett had served on the RadioShack Board since 1986, and was a member of the Audit and Compliance Committee as well as the Corporate Governance Committee. His retirement is effective immediately, and the Company intends to begin a search for a new independent director to fill his Board seat.
Daniel R. Feehan, Non-Executive Chairman of the RadioShack Board of Directors, said, "I would like to wholeheartedly thank Tom for his nearly three decades of service. He has made an enduring contribution to the legacy of this great Company, and his thoughtful input will be missed. We now have the opportunity to identify a new independent director with a fresh voice who will add additional perspectives as we continue the Company's operational turnaround."
The Company also announced that at the conclusion of the current fiscal year on December 31, it will align its fiscal year-end to a traditional 52-week retail calendar with the fiscal year ending on the Saturday closest to January 31st. This is the format used by the majority of retailers today. Changing the Company's yearend will benefit the investment community as it will allow for easier comparability between the Company and its peers. It will also allow the management team to more efficiently track and measure the Company's performance during the year. As a result of this change, the Company will have a stub period between January 1, 2014 and February 1, 2014 that will be identified as Fiscal Year 2014. Fiscal Year 2015 will run between February 2, 2014 and January 31, 2015.
The Board has approved a supplementary incentive program for the management team including the named executive officers for the current fiscal year of 2013. This incentive program will be based upon an EBITDA goal and progress against the Company's strategic initiatives. The target payout under this supplementary program will be one half of the target payout of the existing annual payout amount and may be paid out in part or in whole based on the Company's performance against these goals.
Mr. Feehan said, "These governance, financial, and compensation changes are evidence of our ongoing work to transform RadioShack. The change in our fiscal calendar will make it easier for current and potential investors and analysts to compare us to our retail peers. While we recognize that there will be a short adjustment period as analysts update their models, we expect the long-term benefit to investors to be meaningful. Finally, we have adjusted our executive incentive program to appropriately align and incentivize the management team during the Company's turnaround and ensure that we continue to reward results-driven performance in both the short and longer-term," Mr. Feehan concluded.
ABOUT RADIOSHACK CORPORATION
RadioShack (NYSE: RSH) is a leading national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack® offers consumers a targeted assortment of wireless phones and other electronic products and services from leading national brands, exclusive private brands and major wireless carriers, all within a comfortable and convenient shopping environment. RadioShack employs approximately 30,000 knowledgeable and helpful sales experts globally. RadioShack's retail network includes approximately 4,300 Company-operated stores in the United States, over 270 Company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. For more information on RadioShack Corporation, please visit www.radioshackcorporation.com; to purchase items online, please visit www.radioshack.com. RadioShack® is a registered trademark licensed by RadioShack Corporation.
SOURCE RadioShack Corporation