Battered and buffeted by Redbox and Netflix, with its stock delisted from the NYSE and a massive debt payment looming in a few weeks, Blockbuster has nonetheless seen fit to retain and reward the man who has presided over much of its decline.
A BB regulatory filing has revealed that CEO Jim Keyes will receive a $650,000 retention bonus and 1.25 million shares of (virtually worthless) stock as his contract is extended until June 30 of next year. These perks will go along with his $750,000 annual salary, which remains unchanged from the previous year.
Blockbuster has lost more than $1 billion since Keyes took the reigns in 2007, and its number of locations shuttered since the beginning of the year is nearing 500.
How much of the blame for Blockbuster’s current state should be laid at Keyes’ feet, Insiders? Could a more able leader have turned things around, or were the seeds of BB’s demise sown long before Keyes took the big chair? Hit the comments and let us know if you think Keyes is earning his keep, as well as if you think Blockbuster will still be around by the end of his new contract.