CEO resigns amid resume concerns
RadioShack seeks to restore credibility, names acting executive
Dallas ? RadioShack Corp.’s embattled president and CEO, David Edmondson, resigned Monday following questions about his resume’s accuracy.
The Fort Worth, Texas, electronics retailer said that its board accepted his resignation and had promoted Claire Babrowski – executive vice president and chief operating officer – to acting CEO.
Leonard Roberts, RadioShack’s chairman and Edmondson’s predecessor as CEO, said the move was necessary to restore the company’s credibility.
“One of the most important things we have as a corporation is integrity and trust and we know we have to restore that back to the public,” he said.
Edmondson issued a brief statement Monday but did not discuss his resume.
“For the last 11 years, it has been my privilege to be associated with RadioShack,” he said. “At this time the board and I have agreed that it is in the best interest of the company for new leadership to step forward so that our turnaround plan has the best possible chance to succeed, as I know it will.”
Edmondson’s troubles began last Tuesday when errors in his resume were reported by the Fort Worth Star-Telegram. The company’s board said it stood behind its CEO, a decision Roberts said he now regrets.
On Wednesday, Edmondson said he took responsibility for the errors. Separately, RadioShack said it would hire outside lawyers to investigate errors in Edmondson’s resume, including claims that he earned two college degrees for which the school he attended has no records.
That investigation won’t continue since Edmondson quit, the company said.
Roberts said Edmondson’s severance package would be less than $1 million in a cash payout, but said more details would be released today in a regulatory filing.