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2000 CFO Pay: RadioShack’s Late CFO Made $3 Million

Hughes cashed in nearly $2 million worth of options in last full year with company
Michelle GabrielleApril 9, 2001

Former RadioShack Corp. SVP and CFO Dwain H. Hughes took home more than $3 million from direct compensation and exercised options in 2000, his last full year at the company.

On January 30, 2001, Hughes died at the age of 53 after a brief illness. see related story.

In his last full year at RadioShack, Hughes received $381,700 in salary, $390,598 in bonus, and $137,750 in other compensation. He also was awarded $197,925 in restricted stock awards.

In addition, Hughes fortuitously exercised $1,942,581 in options. Total Compensation: $3,050,554.

In 1999, Hughes received $390,000 in salary, $350,000 in bonus, and $65,589 in other compensation. Total Compensation: $805,589. In both years, “other compensation” included company contributions toward employee benefit plans that included a supplemental stock plan and medical and life insurance premiums.

Hughes’ responsibilities were taken over immediately by Loren K. Jensen, RadioShack’s VP of finance, who joined the company in 1995.

Hughes joined the company back in 1979 as an internal auditor after active service in the United States Air Force in Audit Management from 1971 to 1979. Through the years, he had held various financial positions including audit director, assistant treasurer, and VP/treasurer before being named SVP and CFO in 1995.

As SVP and CFO, his focus was on the company’s vision to lead the industry in shareholder return. The company credits him for implementing its recurring revenue model. Hughes also engineered the divestiture of the company’s under-performing retail formats, allowing RadioShack Corp. to refocus its vision solely on RadioShack.

Hughes earned his BBA and MBA from the University of Oklahoma.

In 2000, RadioShack earned $368 million on $4.8 billion revenue, compared to $297.9 on $4.1 billion revenue in 1999. Specifically, sales of wireless handsets increased 23 percent to 4.1 million units and satellite dish system unit sales hit $1 million, a 64 percent increase.

According to the company’s chairman and CEO, Leonard Roberts, last year was the corporation’s best in terms of profitability. In a press release, he noted, “We achieved every one of our targets with consistent top-line sales growth, increased earnings per share, increased recurring revenue, and enhanced operating margin. During 2000 we focused on executing our strategic business plan. We even changed the name of our company to RadioShack Corporation to reflect our single focus, and goal, of becoming America’s Connectivity Solution,” said Roberts in a press release.

Unfortunately, the “corporation” can’t say the same for its current financial situation. Its stock has plummeted 18 percent to $6.90 from $31.60, after the company warned it would miss first-quarter earnings estimates.