FORT WORTH, Texas-Shares of RadioShack Corp. lurched after company named former KMart Holding Corp. and Sears, Roebuck and Co. executive Julian Day as its new chairman and chief executive officer.
Day has drawn accolades for reviving Safeway Inc., where he served as chief financial officer and then chief operations officer, and KMart, which he led out of bankruptcy as president. The 54-year-old replaces Dave Edmondson, who resigned in February following questions about dubious claims on his resume.
Day-who will draw an annual base salary of $1 million plus bonuses and stock options-once again faces a daunting task in redirecting a major retailer. RadioShack shares have plunged 60 percent in the past 18 months as the company has struggled with problems including lagging wireless sales partially due to a difficult transition from selling Verizon Wireless to now selling service from Cingular Wireless L.L.C.
Investors were pleased with the move as shares jumped $2.94, or 21 percent, to $16.70 following the announcement.
