RadioShack Gets It Right As CEO Retires, Implements Senior Management Succession and Transition Plan

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Julian Day, Outgoing RadioShack CEO

Most of you are like, RadioShack is still open? Yes, it is and contrary to popular belief not dead yet. RadioShack has just announced that Julian Day plans to retire as chairman, chief executive officer, and a director of the Company effective at the Company’s annual shareholder meeting, currently scheduled for the week of May 16, 2011. According to its succession and transition plan, the Board of Directors named Jim Gooch, currently chief financial officer, as the Company’s president, effective immediately. He will become RadioShack’s chief executive officer and a director upon Day’s retirement.

The Board has also determined, as an enhancement to its governance structure, to separate the chairman and CEO roles. Daniel R. Feehan, the Board’s current presiding director and a member of the Company’s Board since 2003, will become non-executive chairman of the Board upon Mr. Day’s retirement. Mr. Feehan is president and chief executive officer of Cash America International, Inc. Day has been CEO of RadioShack  since 2006.

The big thing that caught my attention about this story is that RadioShack has a plan and they are executing it as far as succession and transition. The sad part about it is that lots of tech companies with lots more importance and clout don’t. The result of not having a solid publicized plan, is that in the event something happens to the CEO the company falls into disarray and the stock usually plummets. There have been several cases of this and it just doesn’t make any sense. One the of the bigget culprits here is Apple and its CEO Steve Jobs. He has taken a second leave of absence and nobody is clear what would happen if he couldn’t return to work. Anyway, RadioShack is doing this thing the right way so congrats to them.

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