May 21, 2012 / 2:48 PM / 5 years ago

Best Buy picks Spencer Stuart to run CEO search

The inside of a Best Buy store is seen in New York, March 26, 2012. REUTERS/Shannon Stapleton

NEW YORK (Reuters) - Best Buy Co Inc (BBY.N), the world’s largest consumer electronics chain, said it has selected headhunter Spencer Stuart Inc to conduct the search for a new chief executive.

Brian Dunn resigned as CEO last month. Following his departure, the company said an internal probe found that Dunn had an improper relationship with a female employee.

Best Buy is in the midst of what it expects to be a six- to nine-month search for a successor to Dunn. Board member G. Mike Mikan is acting as interim CEO.

The company said it will consider internal and external candidates for the job.

On Monday, Best Buy also revealed the terms of its contract with Mikan, 41, who was appointed interim CEO on April 10.

Mikan will get bi-weekly payments based on annual cash compensation of $3.3 million, according to a filing with the U.S. Securities & Exchange Commission.

That represents an annual base salary of $1.1 million and $2.2 million in lieu of Mikan’s participation in the executive short-term incentive plan.

Mikan will also get up to 263,000 shares of Best Buy stock, valued at about $5 million, on the completion of his service as interim CEO.

The final amount of Mikan’s stock award will be based on length of service and otherwise determined by the compensation and human resources committee of the board, the retailer said.

Reporting By Dhanya Skariachan; Editing by Maureen Bavdek and John Wallace

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