The total pay for Best Buy Co. Inc. CEO Corie Barry (NYSE:BBY) fell 18% from 2021 to 2022, due primarily to a decrease in awards based upon company performance.
According to a filing made on Tuesday with the Securities and Exchange Commission, Richfield's electronics retailer paid Barry $12.8 million in total. This is down from $15,6 million in 2021.
Barry's salary and stock awards, which totaled nearly $11 million, both increased slightly from the year before, but her non equity incentive compensation dropped by 90%, from $4.7 millions in 2021 to only $456,300.
Best Buy reported a net profit of $1.4 billion in its fiscal year 2023, on sales of almost $46.3 billion. The two figures were both down from fiscal 2022 but the last year was an emotional rollercoaster for retailers. As people began to leave the house, consumer spending changed dramatically. Higher inflation and interest rates also helped reduce demand for items like home theater systems and video games.
Best Buy shares fell by 18% in 2022.
For the first time, the Securities and Exchange Commission has required that some companies report their total compensation based on stock price fluctuations and executive holdings. The Wall Street Journal provides more information on the new rule.
The "compensation paid" measure can make a significant difference in the amount of money a CEO receives. Barry's compensation is now about $3.25M, down from $8.7M in the previous year, based on this revised metric.
Other Best Buy executives experienced even greater pay cuts in 2022. (Like Barry, this decline was mostly due to performance-based incentive programs.
Kamy Scarlett was paid $3 Million in 2022 compared to $4.9 Million in 2021. This is almost 39% less.
The total compensation for the four Best Buy executives in 2022 is actually closer to the amount they received in 2020. That was the year Corie had a 50% reduction in her salary due to the pandemic, and Hartman, Hartman, and Scarlett all took a 20% cut.