Best Buy has started an investigation into allegations of misconduct by its chief executive officer Corie Barry. The news of the independent probe was confirmed by a company's spokesperson. The investigation was initiated after the company received an anonymous letter alleging Barry of having a relationship with another company employee.
However, Best Buy declined to reveal the details of the leader. This is not the first time that Best Buy has dealt with such an allegation or problem. In fact, quite a few companies have faced similar problems lately that have directly affected their share price.
What are the allegations?
The consumer electronics giant started a probe into allegations of misconduct after receiving an anonymous letter on December 7 according to WSJ. The letter alleges Barry of having an inappropriate romantic relationship with former Best Buy senior vice president Karl Sanft. Barry allegedly was into a relationship with Sanft before she became the chief executive officer in June 2019.
Both Barry and Sanft joined Best Buy in the 1990s. Barry went on to become the head of finance in 2016 and then the chief executive officer in 2019. Sanft on the other hand was the senior vice president of the US retail operations till March 2019.
The company's board has retained its outside counsel to investigate the allegations. Barry said that she will be cooperating in the investigations. "The board has my full cooperation and support as it undertakes this review, and I look forward to its resolution in the near term," Barry said in the company statement.
Not the first time for Best Buy
This is not the first time that Best Buy has faced a similar problem of allegations of misconduct by a top company executive. In 2012, the company's then chief executive officer Brian Dunn was accused of personal misconduct at workplace, who had to eventually resign from his post. Following this, Best Buy also ousted its then chairman Richard Schulze after investigations revealed that Schulze failed to inform the company's board about Dunn's romantic relationship with a female employee.
Best Buy isn't the only company to have been facing similar issues. A large number of companies have lately faced similar problem. Last year, McDonald's fired its CEO Steve Easterbrook for having relationship with a female employee that violated the company's policies.