Best Buy founder resigns Schulze didn’t report affair
The founder of Best Buy, Richard M. Schulze, has resigned as chairman after an internal investigation released Monday said he knew about a former chief executive’s improper relationship with an employee but did not report the affair to the board.
The former chief executive, Brian J. Dunn, who abruptly resigned in April, “violated company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment,” the report by the company’s audit committee said.
Dunn, 51, is married with children, and the employee in question was a 29-year-old female subordinate.
Schulze, the chairman, learned about the affair in December, the report said, when an executive gave him a written statement from another employee with specific allegations about Dunn’s behavior.
Schulze then confronted Dunn, who denied any inappropriate contact.
“Following this conversation, the chairman did not share information about the conversation, the CEO’s denial, or any of the related allegations with the audit committee, the general counsel, the head of human resources, the chief ethics officer, or any other board member,” the report said.
Schulze behaved improperly by showing Dunn a signed, written statement from the whistle-blowing employee and by not alerting the audit… Read More