Published On: Tue, May 15th, 2012

Best Buy Chairman to Resign Following Internal Probe

Best Buy Co. founder Richard Schulze is set to step down as chairman next month following an internal probe allegedly found that he did not alert other directors that his chosen successor as chief executive, Brian Dunn, was allegedly having an inappropriate relationship with a female employee.

Best Buy disclosed that its investigation into Mr. Dunn found that he engaged in an “extremely close personal relationship” with a 29-year-old subordinate that “negatively impacted the work environment.”

The investigation did not find that Mr. Dunn misused company assets.

Allegations first surfaced when an unnamed company executive provided the chairman, Mr. Schulze, with a “written statement” from another employee. Mr. Schulze did not pass along this information to the board’s audit committee. Rather, he confronted the CEO, who denied that he was having a relationship with a subordinate, according to the report as reported by the Wall Street Journal.

Mr. Dunn, 51, resigned in April 2012 after the board began its internal probe.

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