ZSW [ C M Y K ] A1 Wednesday, April 11, 2012 hhh variety sports twin cities New evidence Bachmann of tanning’s RUBIO: ‘I DON’T KNOW faces a Graves cancer risk WHEN I’M GOING TO COME BACK’ challenge

wednesday 51°/ 25° APRIL 11, 2012 Frozen tulips? ¬ Cooler, with bright sun. B8 startribune.com top news BestBuyCEOresignsundercloud

0 Board of directors committee is looking into “personal conduct.” for overseeing ’s finances, is in- vestigating Dunn’s “personal conduct.” By THOMAS LEE • [email protected] the nation’s largest consumer electronics “Certain issues were brought to the retailer, will close 50 stores nationwide board’s attention regarding Mr. Dunn’s Best Buy CEO Brian Dunn resigned and lay off thousands of workers. personal conduct, unrelated to the com- Tuesday and the company confirmed “It’s unfortunate that a case of [Dunn’s] pany’s operations or financial controls, 22-YEAR-OLD that it is investigating allegations that he poor judgment got in the way of Best Buy and an audit committee investigation was engaged in personal misconduct. making progress,” said Carol Spieckerman, initiated,” the company said in a state- KILLEDFOR The news stunned investors and indus- president of newmarketbuilders, a retail ment. “Prior to the completion of the in- BRUCE BISPING • Star Tribune file try analysts, who called the accusations a consulting firm. The allegations “are going vestigation, Mr. Dunn chose to resign.” HISBICYCLE CEO Brian Dunn started out on a store floor. major distraction at a time when Best Buy to be a real hit to the company’s credibility.” The company disclosed no details The north Min- is trying to fix its ailing stores. Less than Best Buy said the board of directors neapolis man was Interim CEO tough competitor. D1 two weeks ago, Dunn said that Best Buy, audit committee, normally responsible Best Buy continues on A10 Ø delivering lasagna to a family friend when he was accosted. B1 election 2012 Stock market APRIL FROST THREATENS sinks a fifth day Santorum Analysts say it was ripe for a correction. MINNESOTA’S APPLE CROP “It’s payback.” D2 clearspath Obama pushes for ‘Buffett rule’ Proposal,prospects bleak,deepens distinc- forRomney tion from rivals.A7 0 “This has been a good day for Thwarting phone thieves me,” said the GOP front-runner. Police hope deal to By KATHARINE Q. SEELYE disable stolen devices and JIM RUTENBERG • New York Times will cripple appeal.A2 GETTYSBURG, PA. – Rick Santorum, CDC: Teen births with an abrupt decision to end his cam- hit a new low paign Tuesday, cleared the way for Mitt The 9 percent drop Romney to claim the Republican nomi- continued years-long nation while dashing the hopes of social trend,report said. A2 conservatives who had propelled Santo- rum’s surprisingly successful challenge to the Republican establishment. Santorum, a former senator from local news Pennsylvania, was trailing Romney in delegates and had little hope of catch- Rybak hosts ing up to him, but his strong perfor- stadium forum mance in a brutal nominating contest Conversation was po- established him as a force that the par- lite but pointed at the ty will probably have to reckon with first of the mayor’s this election year and beyond. public meetings. B1 His departure from the race cre- ated an anticlimactic moment in the No arrest in long presidential primary season for triple killing BRUCE BISPING • [email protected] Romney, who has been actively seek- As manhunt contin- Craig Schaper, son of apple grower Lowell Schaper, checked buds for damage on Tuesday after overnight freezing temperatures. ing his party’s nomination for five ues, Brooklyn Park years and found his conservative cre- police say public is dentials constantly in question by the not in danger. B1 Growersraceagainstthecoldtoprotectearlybudsfromfreezing durability of Santorum’s candidacy. The move springs Romney from a By KIM PALMER • [email protected] Minnesota’s apple growers are on edge political limbo in which he was act- after two nights of below-freezing tem- ing like the nominee even though he business innetrista apple grower Lowell peratures, threatening the delicate buds Schaper spent a cold, sleepless that formed weeks ahead of schedule, GOP continues on A6 Ø Supervalu beats M Monday night driving a tractor thanks to this year’s balmy March. No one expectations through his Minnetonka Orchards, trying to knows what, if any, damage has been done Grocery giant earn- circulate warmer air and protect his budding or how it will affect this year’s apple crop, ings up 3 cents a share trees from the chill. but many growers are going to extremes to from projections. D1 Bill Jacobson hired a helicopter to churn protect their crops. “This could be devas- the night air over his family’s Pine Tree Apple MINNESOTA’S APPLES tating,” Schaper said. Orchard in White Bear Lake, an experimental Spring bloom is a sensitive time for ap- online effort his father tried back in the 1960s — “the $12.6 million ple trees, according to David Bedford, re- last time we needed it,” Jacobson said. worth of annual crop search scientist and apple breeder at the The chopper cost more than $600 per University of Minnesota. “Well-bred ap- hour, “but it doesn’t take too many bins of 16 million ples from the University of Minnesota Honeycrisp [apples] to pay for that,” Jacob- pounds grown each year can withstand 30 below [in winter] when GENE J. PUSKAR • Associated Press son said. “It’s scary, but what are you go- they’re dormant,” he said. “We’ve got that Rick Santorum turned to his wife, Kar- ing to do? The helicopter makes you think 17 en, after announcing his departure. you’re doing something.” varieties developed by the U Apples continues on A6 Ø Romney takes aim at Obama. A6

Star Tribune on iPhone, Android Newartificialheartlets Chineseleaderisousted; Get easy access to the top news of the day by scanning with a patientsleavehospital hiswifeismurdersuspect QR reader the code above or visiting 0 Mayo Clinic patient is ready to walk out with backpack. 0 Lurid scandal has embarrassed the Communist regime. startribune.com/ newsapp By MAURA LERNER available to their patients. By CHARLES HUTZLER Media-savvy [email protected] The mechanical heart, made Associated Press with a populist flair, by a company called SynCardia, Bo gained a nation- have you Sometime this week, 51-year- is designed to keep patients alive BEIJING – A flamboyant pol- wide following for heard? old Alvin Carter will leave the until they can get a human heart itician who until recently had busting organized Mayo Clinic with a man-made transplant. The device should al- seemed destined for the top crime and for reviv- A Minnesota hunter heart and a power pack, usher- low Carter, who lives in Michi- ranks of China’s leadership was Bo ing Communist cul- lures collectors (and ing in a new era in Minnesota gan, to live a normal life while he stripped of his most powerful ture while running turkeys) with hand- medicine. waits for a donor heart, said his posts on Tuesday and his wife was the mega-city of Chongqing. carved calls that look In March, Carter became the surgeon, Dr. Lyle Joyce. “That’s named in the murder of a British His publicity-seeking ways like turtle shells — first patient in Minnesota — the exciting thing,” said Joyce. MATTHEW MEYER • Mayo Clinic businessman as Chinese leaders angered some in the top leader- worth $400 each. C10. and one of 1,000 in the world “Now we can send them home.” moved to stem a scandal that has ship, however. In recent weeks, — to receive a portable artifi- After decades of research, « THAT’S THE EXCITING exposed their infighting. allegations of Bo’s and his fam- cial heart that won’t keep him the artificial heart has finally The announcement that Bo Xi- ily’s misdeeds were leaked into tethered to a hospital. hit prime time, Joyce says. And THING. NOW WE CAN lai was being suspended from the public view, complicating prep- Now Mayo and two other he should know. He was one of Communist Party’s Politburo and arations by the leadership for a Minnesota hospitals — Abbott the surgeons who made head- SEND HIM HOME. » Central Committee and that his delicate, once-a-decade transi- Northwestern and the Universi- lines in Utah in 1982, when they wife was a suspect in a homicide tion to younger leaders at a con- ty of Minnesota — are all start- Dr. Lyle Joyce, about Alvin Carter, investigation put an end to a col- ing programs to make the device Heart continues on A5 Ø 51, above, with his power pack. orful political career. China continues on A5 Ø

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A10 • STAR TRIBUNE • WEDNESDAY, APRIL 11, 2012 hh Conductunderinvestigation,CEOBrianDunnresigns

ø BEST BUY FROM A1 former top executives said. would ultimately succeed by Looking ahead who helped develop the high- move a different way,” Spieck- But Dunn’s appointment staying the course. “The farther For investors, the key question ly successful Best Buy Mobile erman said. An outside CEO can about the investigation. raised eyebrows among employ- away you get away from being is who replaces Dunn. The com- format. restore confidence among inves- When Best Buy released a ees and analysts, who said he who you are, the more trouble pany named board director G. But Best Buy has a history of tors and customers. statement Tuesday morning an- lacked vision and strategy. you will get into,” Dunn told the “Mike” Mikan as interim CEO. hiring from within. The compa- “This is absolutely the turning nouncing Dunn’s departure, it During the next three years, leadership conference. Analysts threw out some out- ny’s three CEOs to date, Schulze, point for the company,” she said. made no mention of the investi- Schulze stuck by his protégé, “You have to reward people side possibilities, including for- Anderson, and Dunn, were all “The window of opportunity [to gation, saying only that the com- even as Best Buy’s declining for being honest and forthright,” mer Best Buy executive and cur- longtime employees. revive the company] is starting pany and Dunn parted ways by stock price eroded the value of he said of his leadership style. rent Advance Auto Parts CEO Spieckerman of newmarket- to close. This is a make-or-break “mutual agreement.” The com- Schulze’s 19 percent stake. “Do you understand who you Darren Jackson and Charles builders said the company needs moment.” pany later acknowledged the in- Despite the criticism, Dunn are and what you’re good at?” Dunstone, chairman of British new blood. Dunn’s resignation vestigation of Dunn in response expressed confidence that he retailer Carphone Warehouse, “gives Best Buy permission to Thomas Lee • 612-673-4113 to a Star Tribune inquiry. For most of his three years, Dunn has faced criticism from investors over the sinking stock Macy’s andClinton Kellyare abouttomakesomeone’sdream areality! price and sales. The Richfield- getasneak peek at facebook.com/macys PREMIERES APRIL177/6C based retailer started as a single store in St. Paul in the 1960s and has since grown to about 1,100 U.S. stores with $50 billion in an- nual sales. But in recent years it SAVE has been losing market share to Wal-Mart and online competi- OUR CUSTOMERS’ 5-STAR tors such as Amazon.com. The company’s core market, big-ticket consumer electronics ON FAVES FAVORITES items such as PCs and flat-pan- el televisions, has been rapidly shrinking as more consumers 25%-5O%OFF STOREWIDE plus valuesfor kids migrate to the Internet. † Best Buy’s struggles have led Take an extra 15%or1O% off with your Macy’scardorpass. †Exclusions apply; see pass. to speculation that Dunn would lose his job. Ye t Dunn contin- SALE 25%-40% OFF SEPARATES ued to call the shots and an- 9.99-21.99 Reg. $30-$129, sale $18-96.75. From our Charter Club, nounced the company’s restruc- EPIC THREADS Alfani &JMCollection; plus, Jones New York &afamous NY maker. Misses. Selections for turing plan, which aims to slash Reg. 12.99-24.99. petites &women; women's prices slightly higher. $800 million in costs over three Only at Macy’s. years, expand more aggressively Tees, shorts and tops. Boys’ 8-20; “With versatile overseas and open smaller for- girls’ 7-16. mat stores. styles like these, “A ll of the sudden, 13 days lat- Ican go from work er, they can the guy,” said Jer- to weekend with no emy Brunelli, a retail analyst problem.” with Consumer Edge Research. “Something else must have hap- –Sylvia, Honolulu, HI pened.” Best Buy stock fell 6 per- cent Tuesday, or $1.33, to close BUY 1, BUY 1, at $21.32. Analysts say investors GET 1FREE GET 1FREE were driving down the price SUITS DRESS SHIRTS & out of fear that Dunn’s depar- Reg. $495-$650 ea. TIES ture meant company sales were Tommy Hilfiger, Reg.52.50-59.50 ea. worse than expected. But it Kenneth Cole Geoffrey Beene, turned out, Dunn’s personal be- New York, Kenneth Cole ® havior, not the company’s sag- Michael Kors, Reaction & our Tasso MICHAEL ging fortunes, led to his exit. Elba, more. Michael Kors. A fairy-tale rise Until now, Dunn’s rise had a fairy-tale quality to it — a hard- working, 28-year Best Buy veter- an who rose from the store floor to the executive suite. Recalling his first days as a BUY 2, EXTRA 30% store employee, Dunn recently GET 1 OFF* 3OR told a leadership conference that FREE MORE PAIRS he was not impressed with the BRAS EXTRA 20% OFF* 2PAIRS, EXTRA retailer. “My first day was dread- Reg. $32-$38 ea. From Bali® , 15% OFF* 1PAIR ful,” Dunn said. “I hated it. The Maidenform® , The Great Shoe* Sale store manager asked me, ‘How Vanity Fair® is in progress.Save on do you like what you’re doing?’ I &Warner’s® . AK Anne Klein ( ★ WebID 652459) ,Marc Fisher, said, ‘I think this place stinks.’” Shown: Bali® Seamless Bandolino, Madden Girl But Dunn said he grew to Support and more. love the company, a devotion Minimizer. that eventually caught the eye of founder Richard Schulze. When former CEO Brad An- derson retired in 2009, Dunn was the only serious candidate, ALL‡ FINE JEWELRY 30%-50% OFF Plus, extra 15%or1O% off † +EXTRA 10% OFF SELECTIONS when you use your Macy’scardor Reg. $200-$8000, final cost $90-$5040. Diamonds, rubies, 14k pass †Exclusions apply; see pass. BEST BUY CO. INC. gold &more. Fine jewelry on sale 4/11-4/14; in Georgia, 4/12-4/14. Headquarters: Richfield Description: Nation’s larg- est consumer electronics retailer 2012 revenue: $50.7 billion STOREWIDEITEMS 2012 net income: (–$1.23 WOW! PASS billion) EXTRASAVINGS ON ALL SALE &CLEARANCE Employees: 180,000 APPAREL! (EXCEPTSPECIALS&SUPER BUYS) Ticker symbol: BBY % Brands: In addition to Best EXTRA15 OFF Buy’s stores and online 50% OFF SELECT SALE &CLEARANCE APPARELFOR HIM, HER&KIDS, operations,brands include MARTHA STEWART PLUS INTIMATES, FINE &FASHION JEWELRY&MEN’S SHOES Geek Squad,Audio Visions, EXTRA10% OFFALL SALE &CLEARANCE WATCHES, COLLECTION™ COATS, SUITS, DRESSESAND SELECT HOMEITEMS Carphone Warehouse,Five Reg. $100-$360, sale 49.99-179.99. Star Appliance,Future Shop, Only at Macy’s. All quilts &bedspreads. Excludes: Everyday Values (EDV), specials, superbuys, shoes forher,furniture,mattresses,floor Shams also on sale. coverings,rugs,electrics/electronics, cosmetics/fragrances,giftcards,jewelry trunk shows, Magnolia Home Theater, previouspurchases,special orders,selectedlicensed depts., special purchases,services, macys. Pacific Sales,Best Buy Mobile com. Cannot be combined with anysavings pass/coupon,extra discount or credit offer except openinganew Macy’s account. EXTRASAVINGS %APPLIED TO REDUCEDPRICES. and Best Buy for Business OR TEXT “CPN”TOMACYS ( 62297 )

A LOOK AT CEOS Best Buy Co. Inc. was found- COATS, SUITS&DRESSES ed in 1966 and has had three VALID4/11-4/15/2012 permanent CEOs: • Richard Schulze, 71 1966-2002: Founder, chairman, CEO June 2002-present: Chair- man • Bradbury Anderson, 62 Joined Best Buy in 1973 1991-June 2002: Presi- dent and COO June 2002-June 2009: CEO • Brian Dunn, 52 FREE ONLINESHIPPING EVERYDAY +EXTRA 15%OR1O% OFF FREE SHIPPING WITH $99PURCHASE . USEPROMO CODE: FAVES FOREXTRA SAVINGS; OFFERVALID 4/11- Joined Best Buy in 1985 4/15/2012. EXCLUSIONSAPPLY;SEE MACYS.COMFOR DETAILS. 1985-2006: Various posi- tions Free item(s) is at time of purchase &mustbeofequal or lesser valuethanpurchased item;returns must includethe purchased &free item(s). ➤ REG. PRICES ARE OFFERINGPRICES&SAVINGS MAYNOT BE BASEDONACTUALSALES.SAVEONFAVES SALE PRICES IN EFFECT4/11-4/15/2012, EXCEPT AS 2006-June 2009: Presi- NOTED. ‡Savings offreg prices.Does notincludewatches, designer collections,Donatella™,fashion jewelry or diamond engagementrings.Extra savingstaken dent and COO offsaleprice;“final cost”shows priceafter extrasavings;does notincludeEverydayValues, superbuys, specialsortrunk shows. Jewelryphoto maybeenlarged or enhancedtoshowdetail. Fine jewelry at select stores,log on to macys.comfor locations. Almost allgemstones have been treated to enhance their beauty &requirespecial care,log on to macys.com/ June 2009-April 2012: gemstones or askyoursales professional.*Savingsoff regular, sale &clearance prices;excludesEverydayValues&designer shoes.Advertised merchandisemay notbecarried at your localMacy’sand CEO and board member selectionmay vary by store. Prices and merchandisemay differatmacys.com.N2030024. ★ Enter theWebID in thesearchbox at macys.com to order. • G.“Mike” Mikan, 41 April 2012: Named in- OPEN AMACY’SACCOUNTFOR EXTRA20% SAVINGSTHE FIRST2DAYS, UP TO $100,WITH MORE REWARDSTOCOME. Macy’s credit card is available subject to credit approval; new account savings valid the day your account is opened and the next day; excludes services, selected licensed departments, gift cards, restaurants, gourmet food &wine. The new account savings are limited to atotal terim CEO of $100; application must qualify for immediate approval to receive extra savings; employees not eligible. ZSW [ C M Y K ] D1 Wednesday, April 11, 2012 h digital life D3 Celebs lend their names, business cash to tech start-ups. STARTRIBUNE.COM/BUSINESS • SECTION D • WEDNESDAY, APRIL 11, 2012 Investors UNITEDHEALTH VET MIKAN getareason tobuyshares ASKED TO STEADY BEST BUY ofSupervalu

4 Quarterly results at the battered grocery operator beat Wall Street’s estimates, sparking a big gain in the company’s shares.

By MIKE HUGHLETT [email protected]

Troubled supermarket giant Supervalu Inc. offered a ray of hope Tuesday, its fourth-quarter perfor- mance and its new fiscal year out- look both exceeding Wall Street’s ex- pectations. The Eden Prairie-based compa- ny’s stock soared 15 percent, making it the biggest gainer in the S&P 500, a broad measure of the stock market, which generally tanked Tuesday. Supervalu still has a long way to go in executing its turnaround, and it “remains a major work in prog- ress,” according to a research note by Ajay Jain, a stock analyst at Can- tor Fitzgerald. “But the latest results offer valida- tion that the business is not funda- mentally broken and that [Supervalu] is not in a financially distressed situ- ation.” Supervalu posted a third-quar- ter net loss of $424 million, or $2 per share, the result of one-time as- GLEN STUBBE • [email protected] set impairment charges of $492 mil- Mikan has been on Best Buy’s board since 2008. His departure from UnitedHealth Group Inc. last July surprised some analysts who saw him as a future CEO. lion after taxes. The charges complet- ed Supervalu’s write-down of erod- ed intangible assets from the $12 bil- Though he brings financial bona fides What Best Buy lion purchase of most of Albertsons in 2006. as the company’s interim CEO, analysts Excluding one-time items, Super- needs is an outsider valu earned 38 cents per share, better don’t see him in the job permanently. than the 35 cents per share estimated as its next CEO by analysts for the quarter. Its sales By DAVID PHELPS and JANET MOORE Schulze. In addition to his tenure on the of $8.2 billion were down from last Star Tribune staff writers board, Mikan also is a graduate of the Uni- year’s $8.7 billion and below analysts’ versity of St. Thomas, where the business Brian Dunn is out as As a basketball player, G. “Mike’’ Mikan college’s school of entrepreneurship is chief executive of Best Supervalu continues on D3 Ø III, Best Buy’s interim CEO, was known for named after the Best Buy founder, who re- Buy, but not for the rea- being prepared, tough and competitive, at- mains the company’s largest shareholder. sons many thought would tributes that should serve him well as he Both men call Edina home. prove his ultimate undo- takes the lead of the struggling electron- “A s we move forward we are very ing: Losing the loyalty of ics giant. pleased to have a strong leader with Mike customers and the confi- The former Mikan’s credentials as interim CEO,” said dence of investors. UnitedHealth Group Schulze in a statement announcing Mi- eric Too bad, because it Inc. executive, who kan’s promotion. Mikan will remain on means Best Buy remains hails from basketball the board while a formal search for a new wieffering — at least for the time be- royalty, will lead Best chief executive takes place. ing — wedded to a flawed Buy just as it begins a Best Buy noted in its news release that strategy. And that will make it much tougher for the Supervalu’s stock closed at $6.13, up 81 massive retooling of its Mikan has “strong financial and opera- next CEO to revive the fortunes of the nation’s big- cents. The stock is trading at levels that business model after tional expertise, as well as public compa- gest electronics retailer. haven’t been this low in more than 25 the sudden departure ny leadership experience.” Mikan was not Best Buy has had only three CEOs in its 46 years, years. G.“Mike” Mikan of CEO Brian Dunn, available for an interview Tuesday. and all grew up within the company. Dunn, whose who resigned Tuesday tenure was the briefest, began his career wearing a amid a company probe relating to his “per- Mikan continues on D6 Ø blue shirt on the sales floor. sonal conduct.’’ What Best Buy most needs now, however, is some- STOCKS DOWN The “G” in Mikan’s name stands for one who can look at the company with fresh eyes, George, as in George Mikan, his grandfa- Related: Brian Related: From someone not burdened by history. And that means The S&P 500 ther and the late Minnesota professional Dunn out as Best fast rise to re- hiring from the outside. posts biggest basketball legend. Buy CEO amid cent stumbles, The interim appointment of board member G. Mikan, who turned 41 on Monday, has misconduct in- a Best Buy “Mike” Mikan to the top job could be taken as an en- loss of 2012 D2 been on the Best Buy board of directors vestigation. A1 timeline. D6 couraging sign that directors recognize that the next since 2008 and knows Chairman Richard CEO won’t come from within the halls of Best Buy’s Richfield headquarters. If that person existed, he or Kocherlakota: « MIKAN’S A PROVEN LEADER, BUT I THINK YOU NEED TO BRING she would surely have been identified in the succes- sion plans that companies have in place for days like Rate bump may IN FRESH BLOOD AND FRESH IDEAS ... TO FIND SOMEONE WHO IS Tuesday. be needed D6 Though an accomplished executive, Mikan should RELEVANT TO THE MARKETPLACE. » not be seen as anything more than a placeholder. He earnings rebound Wall Street analyst Matt Arnold of Edward Jones & Co. Wieffering continues on D6 Ø from last year’s slump D2 Cafesjianaccusesformeremployeeoftheft Creditunioncontestofferscash prizesforthebestbank-bashing 4 He alleges that a trusted lawsuit filed last month by a former Holdings subsequent to Waters’ de- employee, who’s suing him for employee, John Joseph Waters Jr., 55, parture, is intentionally working to of Eden Prairie. cause harm to Waters and to Waters’ By JENNIFER BJORHUS credit unions, on the “Minnesota back wages, embezzled millions. Waters’ suit, filed without an at- reputation,” he wrote in his suit. [email protected] Credit Unions” Facebook page. torney, alleges that Cafesjian has be- Cafesjian, the primary benefactor The top four winners will be By DAN BROWNING come increasingly paranoid, miser- of the historic State Fair carousel that Complaining about fees and oth- awarded $2,000 and a chance to [email protected] ly and vindictive as he has aged, and now bears his name in Como Park, er big bank frustrations is nothing take part in a video series, the Min- stiffed him out of more than $5 mil- fired back in a counterclaim against new. Now, you could actually win nesota Credit Union Network (Mn- A former West Publishing Co. ex- lion in salary. Waters and his wife, Cheri Kuhn Wa- money for it. CUN) said Tuesday. Stories can be ecutive who has spent his retirement “Waters believes that Cafesji- ters. Minnesota’s credit unions are submitted Tuesday through May 7. years as a patron of the arts and pro- an, angry with Waters over Waters’ “Waters initiated this lawsuit in an hosting a “Bankziety” contest on The grouse-fest marks the launch moter of Armenian causes has ac- [2009] departure from the day-to- audacious gambit to rationalize his Facebook with cash prizes and gift of a new marketing campaign being cused a longtime employee of em- day operations of the Cafesjian Fam- illegal diversion of Mr. Cafesjian’s cards as they try to capitalize on the run by Minneapolis-based pub- bezzling millions of dollars from him ily Office, [is] seeking to avoid paying funds,” the suit says. The suit, filed public’s bank-bashing mood and lic relations agency Padilla Speer and his companies. his outstanding obligations to Waters, by Andrew Luger of the Greene Es- spotlight their not-for-profit in- Beardsley. MnCUN wouldn’t spec- Gerard Cafesjian, 86, now living in fearful of the sensitive and confiden- pel law firm in Minneapolis, says that dustry. The lenders are encourag- ify what it’s paying Padilla Speer, Naples, Fla., made the accusations in tial information Waters possesses re- Waters exploited his position of trust ing people to vent their bank frus- but said it’s less than $300,000 for a federal lawsuit he filed Monday in garding Cafesjian, and bitter over the trations, as well as share their sto- St. Paul. The suit came as a reply to a poor performance of the Cafesjian Cafesjian continues on D2 Ø ries about positive experiences with Credit unions continues on D2 Ø

Dow Nasdaq S&P 500 NYSE Russell 2K ST100 Gold (oz.) Oil (bbl.) 3-month 10-year 30-year Prime LIBOR U.S. dollar ▼ 213.66 ▼ 55.86 ▼ 23.61 ▼ 150.41 ▼ 19.31 ▼ 4.45 ▲ $16.00 ▼ $1.44 T-bill T-note T-bond rate 1 month 1.3076 $/euro 12,715.93 2,991.22 1,358 .59 7,841.91 784.15 194.05 $1,659.90 $101.02 0.08% 1.98% 3.13% 3.25% 0.24% 80.79 yen/$ ZSW [ C M Y K ]D6 Wednesday, April 11, 2012

D6 • BUSINESS • STAR TRIBUNE • WEDNESDAY, APRIL 11, 2012 h UNITEDHEALTH VET ASKED TO STEADY BEST BUY

Best Buy from the beginning

1978: Sound of 1989: Best 1993: 1995: Best Buy debuts in 2002: Brad Anderson 2006: Best Buy 1966: Richard Music operates Buy launches Becomes Fortune magazine’s an- succeeds founder acquires ma- Schulze and a busi- nine stores in 1983: Company non-commissioned nation’s sec- nual ranking of 500 largest Richard Schulze as CEO jority interest ness partner found an Minnesota name changes to warehouse-style ond-largest companies at No. 373 2002: Best Buy acquires in Jiangsu Five electronics store called Best Buy Co. Inc. retail strategy, in- consumer computer service company Star Appliance Sound of Music and it opens first troduces Best Buy electronics Geek Squad stores in China superstore yellow tag logo retailer

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2112

1981: A tornado 1993: 1969: Sound of hits Roseville; Competitor 2001: Best Buy acquires 2003: Moves into 2004: Forbes 2008: Acquires Music trades as company responds Highland Musicland for $685 million new $160 million, magazine online music a publicly held with“Tornado Sale” Super- 1.5 million-square- names service Napster company, has which launches its 1985: Best Buy has an initial stores Inc. 2001: Best Buy goes inter- foot corporate cam- Best Buy in October three stores low-price, no-frills public offering on Nasdaq is forced to national, acquires Canada- pus in Richfield “Company for $121 retail environment and raises $8 million liquidate based Future Shop of the Year” million 2003: Sells its interest in Musicland $ 50 Best Buy under Dunn’s tenure 45 $45.52 40 STEEP DROP April 10, 2012 2009: 2009: 2011: Best 2012: Best Buy 2012: S&P puts Best Tuesday: Under Dunn’s 35 $21.32 Competitor Brian Buy sells announces Buy’s corporate cred- Dunn re- 30 tenure, shares $33.49 Circuit City Dunn Napster in plans to close it rating on watch, signs; G. 25 peaked in 2010 $28.02 Brian Dunn becomes CEO liquidates named November 50 superstores in line for possible “Mike”Mi- before their steep 20 of Best Buy, June 24, 2009 CEO in and lay off downgrade to“junk” kan named decline 15 June hundreds status interim CEO 0 2009 2010 2011 2012 PATRICK KENNEDY Source: Bloomberg

ø MIKAN FROM D1 health information and tech- nology business. GEORGE L. ‘MIKE’ MIKAN III Best Buy should put Sales at the Minnesota- When named to head the In the news: Named Best Buy interim CEO Tuesday based big-box retailer have re- Optum unit, analysts specu- Age: 41 mained flat for three years at lated Mikan could advance to Career: Mikan has been a Best Buy director since April 2008. outsider in CEO’s job about $50 billion. Meanwhile, the top spot at UnitedHealth. He’s held senior executive positions at UnitedHealth Group online competitors such as Ana Gupte, analyst at Sanford Inc., including executive vice president and CEO of Optum- Amazon.com have taken mar- C. Bernstein, said at the time, Health from January 2011 to July 2011, executive vice presi- ø WIEFFERING FROM D1 two weeks ago, and that in- ket share from the compa- “Mikan’s move to head up dent and chief financial officer of UnitedHealth Group from vestors panned for being too ny, which has responded with health services is significant. November 2006 to January 2011, chief financial officer of has no retail experience, he’s little, too late. plans to close 50 stores and lay They are giving him operating UnitedHealthcare and president of UnitedHealth Networks, never run a Fortune 500 com- Typically, a new CEO gets off thousands. Best Buy, the experience to develop him.” both affiliates of UnitedHealth Group, from 2004 to 2006. He pany and his tenure running a fresh start; everything is on third-largest public company Dave Shove, health care an- joined UnitedHealth Group in 1998 after working four years at UnitedHealth Group’s Optum the table. Best Buy’s next CEO based in Minnesota, has about alyst with BMO Capital Mar- Arthur Andersen. unit lasted just six months. might not have such free rein. 180,000 employees world- kets, calls Mikan “a pretty ca- Education: Bachelor’s degree, University of St. Thomas, 1994 Any insider also would be As my colleague, Thomas wide. pable guy.” PATRICK KENNEDY dogged by questions relating Lee, reported on Sunday, the Analysts who follow the “He not only understood the to Dunn’s departure and the company’s directors, includ- company say Mikan can help money side of the ledger, but findings of the continuing in- ing Best Buy’s founder, chair- provide stability in the wake of also how the business worked « WE ARE VERY PLEASED TO ternal investigation, such as man and largest sharehold- Dunn’s surprising departure, — the products, customers, how long executives or di- er, Richard Schulze, played a but they predict someone else the trends. He’s definitely not HAVE A STRONG LEADER WITH rectors knew about the alle- major role in hammering out be selected to take the job per- a green-eyeshade kind of guy. MIKE MIKAN’S CREDENTIALS gations of personal miscon- the restructuring plan that manently. Whether that will translate to duct, how were they made opened to such bad reviews. “Mikan’s a proven leader, computers and phones at Best AS INTERIM CEO. » aware and how long they In fact, Best Buy went out but I think you need to bring Buy, I have no idea.” Richard Schulze,Best Buy’s founder and largest shareholder waited before deciding to in- of its way on Tuesday to in- in fresh blood and fresh ideas,” But in a move that left an- vestigate. sist Dunn did not leave be- said Matt Arnold, an analyst alysts wondering, Mikan we understand his desire to er moved to Los Angeles) and Best Buy can’t afford that cause of differences over with Edward Jones & Co. “Best abruptly left UnitedHealth in move in a new direction.” was instrumental in forming kind of distraction. Investors, strategy or operations. Inves- Buy can take this opportuni- July 2011. UnitedHealth an- At the time, several ana- the Minnesota Timberwolves. meanwhile, aren’t interested tors weren’t exactly cheered ty to look everywhere to find nounced that former Fideli- lysts viewed the news nega- Mike Mikan’s father, Larry, in a caretaker. The next CEO by that prospect, sending Best someone who is relevant to the ty Investments executive Lar- tively. “The main negative here was a star University of Min- will be under intense pres- Buy’s shares down almost 6 marketplace.” ry Renfro would take over Op- is not that there was a surprise nesota Gophers basketball sure from Wall Street to eval- percent on a day when the Dave Brennan, professor tum, after a relatively brief stint change in management, but player. The youngest Mikan uate and overhaul the com- major indexes fell less than of marketing at St. Thomas, with the health care company. rather a loss of one of the stron- played basketball at Benilde- pany’s business model. So 2 percent. agreed. That transition was part of gest managers at the company,” St. Margaret’s. the next CEO would ideally As they consider CEO “Mikan is a financial guy. In UnitedHealth’s ongoing strat- Barclays Capital analyst Joshua In a 1989 interview with be less wedded to the current prospects in the coming days the longer term, the real issues egy to build two distinct busi- Raskin wrote in a research note the Star Tribune, comments big-box format and more will- and weeks, Best Buy’s direc- are marketplace issues,” said ness platforms — health ser- to investors. by Mikan’s high school coach ing to upend the orthodoxy tors will surely ask candi- Brennan, co-director of the In- vices under the Optum brand Raskin further speculated seemed prescient: “He knows that Best Buy is a few tweaks, dates if they agree with the stitute for Retailing Excellence. and traditional insurance and that the executive shuffle was the game and he’s thorough. some modest store closings company’s strategy and tac- “They need to look outside the other benefits under the Unit- “reflective of internal difficul- That’s a big advantage. If he and a hot gadget away from tics for regaining relevance organization for someone fa- ed Healthcare umbrella. ties at UnitedHealth Group.” makes a mistake, it’s because regaining its momentum. with consumers. miliar with Internet retailing.” Mikan was out after only six Mikan was well-compensat- he’s aggressive. But we can use What’s not clear is wheth- Hint: Hire the one who Mikan’s professional cre- months at Optum. ed for his more-recent leader- him to guard one of the oppo- er Best Buy would welcome a says no. dentials were burnished in the A news release at the time ship roles at the Minnetonka- nent’s better players because person whose first act might big health care provider’s fi- said Mikan was “leaving to lead based company. Between 2007 he’s heady and doesn’t get in- be to repudiate the restruc- [email protected] • 612-673-1736 nance department, which he a private equity company.” The and 2010, he earned about $12.5 to foul trouble. If anything, he’s turing plan Dunn unveiled joined in 1998. After assum- firm was not named, and its million in total compensation, too tough on himself. That’s his ing a series of positions with identity is still a mystery. according to securities filings. competitiveness.” increasing responsibility, Mi- Inastatement,UnitedHealth Like Best Buy, the Mikan kan was named a finance vice CEO Stephen Hemsley called name is a home-grown institu- Staff writer Patrick Kennedy contributed president and chief financial Mikan “an extraordinary talent tion. His grandfather, George, to this report. officer in November 2006, a who has made numerous con- was a Minneapolis Laker who David Phelps • 612-673-7269 Earningsseasonbegins job he held until January 2011, tributions of incalculable val- is known as one of the pio- Janet Moore • 612-673-7752 when he was tapped to head ue to our enterprise over the neers of pro basketball. He led the company’s fast-grow- years. … While we will miss the Lakers to several cham- withsurpriseAlcoaprofit ing Optum unit, a $27 billion him as a friend and colleague, pionships (the franchise lat-

By SANDY SHORE mobiles, aircraft, construc- Associated Press tion and packaging for bev- erage cans. Alcoa Inc. reported a sur- Alcoa’s report gives an Fedchief:Ratebumpmaybeneededsoon prise profit for the first quar- optimistic start to what is ter after it sold more alumi- expected to be the weak- num to a wide range of cus- est earnings season in more tomers, from automobile than two years. Analysts ex- By JEFF KEARNS pects an unemployment rate of manufacturers to beverage pect earnings for companies and JOSHUA ZUMBRUN around 7 percent, he said. can makers. in the Standard & Poor’s 500 Bloomberg News The regional bank chief said The largest U.S. aluminum index to decline 0.1 percent he wouldn’t rule out that high- maker also benefited from compared to a year ago, ac- NICOLLET, MINN. – Federal er rates may be warranted as cost-cutting steps that made cording to FactSet. Reserve Bank of Minneapolis early as the first half of 2013. its operations more efficient. “It looks like they’re going President Narayana Kocher- He also said accelerating the The company’s stock price to get the earnings season off lakota said the central bank policy change involves risks to jumped more than 5 per- on a good note,” said Argus may need to begin raising in- the recovery. cent in after-hours trading Research analyst Bill Selesky. terest rates as soon as this year “If the sense of the commit- Tuesday. Alcoa cut some smelting as inflation may exceed its 2 tee was to move the date to ear- Alcoa reported net income and refining operations earli- percent target next year. ly 2013 I would be open to that of $94 million, or 9 cents a er this year. Demand fell late “My own belief is that we possibility,” Kocherlakota told share, on Tuesday. While in 2011 because of concerns will need to initiate our some- reporters after his remarks to that’s a 70 percent decline about a slowing global econ- what lengthy exit strategy the Southern Minnesota Ini- from net income of $308 mil- omy. Those cuts, among oth- sometime in the next six to RICHARD SENNOTT • Star Tribune file tiative Foundation. “That’s lion, or 27 cents a share, a year ers put into place during the nine months or so, and that Narayana Kocherlakota:“We will need to initiate our somewhat something I’d be happy to talk ago, analysts had been expect- recession, helped improved conditions will warrant raising lengthy exit strategy sometime in the next six to nine months or so.” about and interested in think- ing a loss of 4 cents a share. productivity. rates sometime in 2013 or, pos- ing about, but I think there’s al- Revenue totaled $6 billion, The company said it re- sibly, late 2012,” Kocherlakota sion falters or prices rise at sees inflation, as measured by ways a danger in moving policy up from $5.95 billion in the corded higher sales from au- said Tuesday in Nicollet, in a rate slower than its 2 per- the personal consumption ex- levers too much too fast.” year-ago quarter. Analysts pre- tomotive, commercial trans- southern Minnesota near cent target, according to min- penditures index, of around 2 Fed presidents rotate voting dicted revenue of $5.77 billion. portation and aerospace man- Mankato. utes of their March 13 meeting. percent this year, rising to 2.3 on monetary policy, with Ko- Alcoa’s performance can ufacturers. Federal Open Market Com- U.S. employers added 120,000 percent in 2013. He expects the cherlakota next voting in 2014. reflect broader economic Alcoa released its earn- mittee members expressed no jobs in March, the fewest in unemployment rate to fall to 7.7 The Minneapolis Fed chief dis- trends because it mines, pro- ings after the market closed. sentiment for increasing mon- five months, a report showed percent at the end of 2012 from sented from two decisions of cesses and sells aluminum Shares rose 5.6 percent to etary accommodation un- April 6. its current level of 8.2 per- the FOMC last year to increase used by a vast number of in- $9.84 in the extended trad- less the U.S. economic expan- Kocherlakota said that he cent. By the end of 2013, he ex- monetary stimulus. dustries — including auto- ing session. ZSW [ C M Y K ] A1 Thursday, April 12, 2012 hhh nation • a5 sports business Do odd work Twin Cities hours pile on LOVE TAKES BIG HIT home prices the weight? WOLVES STAR LEAVES GAME, GOES TO HOSPITAL rise in March

thursday 60°/ 32° APRIL 12, 2012 There goes the sun ¬ Late clouds to bring rain. B8 startribune.com top news Dunn’sconductwithstafferatissue

, Best Buy resources allegedly used inappropriate relationship ing, the company declined. Dunn, a Best Buy veteran who started during relationship with subordinate. with a female employee, the “A s we have said, the investigation is with the company in 1985 as a salesman, Star Tribune has learned. ongoing. We have no additional com- has not responded to phone calls and By THOMAS LEE Asked multiple times to ment at this time,” said Greg Hitt of other efforts to reach him for comment. [email protected] respond to the allegations Public Strategies Inc., who is acting as a On Tuesday, Best Buy said that Dunn ROMNEY regarding Dunn, Best Buy spokesman for Best Buy. had resigned by “mutual agreement,” less Best Buy’s board of directors is inves- representatives declined Dunn According to a source close to Best than two weeks after he announced the OUTLINES tigating allegations that former CEO Bri- to comment. Asked directly Buy, the company is investigating mul- largest restructuring plan in the compa- an Dunn, who abruptly resigned Tuesday, Wednesday whether the company want- tiple complaints that Dunn behaved in- TO-DOLIST used company resources to carry out an ed to challenge the Star Tribune’s report- appropriately with a female subordinate. Best Buy continues on A14 Ø The presumed GOP presidential nominee ticks off goals,a cam- paign tradition – but WORRIES CRESCENDO FOR Publishers, first? The election. A6 John Edwards trial to convene MINNESOTA ORCHESTRA Applesued Jury selection begins today in politician’s corruption case. A2 overprices Two quakes, but no tsunami Indonesians panicked after the warnings, ofe-books later canceled. A4

Confusion over , Authorities said price-fixing health law scope cost consumers $100-plus million. Supreme Court may think the challenged By HAYLEY TSUKAYAMA • Washington Post legislation is broader than it truly is. A3 The Justice Department on Wednes- day accused Apple and five of the na- tion’s largest publishing houses of fix- ing prices on e-books and forcing con- local news sumers to pay more than $100 million in the past two years for their favorite titles Rybak: North by adding $2, $3 or sometimes as much Side vital to city as $5 to the price of each e-book. We must“get north In a lawsuit filed in U.S. District Minneapolis right,”he Court in New Yo rk, the government said in annual State painted a portrait of an industry des- of the City speech,at perately trying to turn a profit amid Capri Theater. B1 rapid changes in technology and ag- gressive competition from online re- Chewing tobacco tailers. In phone conversations, e- at Target Field mails and dinners at exclusive New Lifting a two-year Yo rk restaurants, the companies’ top ban, Twins officials executives colluded to wrest control say smokeless tobac- of the market from Amazon.com and co now permitted. B3 raise prices on e-books, the complaint said. It was this coordinated effort that raised flags for federal investigators. business BRIAN PETERSON • [email protected] “We allege that these executives The Minnesota Orchestra, led by Osmo Vänskä, practiced Tuesday at Orchestra Hall, which will soon close for renovations. knew full well what they were do- Consumer credit ing,” acting Assistant Attorney Gen- picture brightens , As it plays in exile, the state’s largest arts group faces a big deficit and enters crucial labor talks with musicians. eral Sharis Pozen said. Risk managers indi- None of the firms has admitted cate they expect fewer By GRAYDON ROYCE ganization can spend $50 million on the delinquencies. D1 [email protected] $135,000 building project and continue touring E-books continues on A9 Ø Average salary for musicians in the and recording plans. Musicians’ salaries HomeServices In concert, the band has rarely sounded Minnesota Orchestra in 2011. account for 48 percent of the orchestra’s expands to east better. Backstage, the Minnesota Orches- $32 million budget for fiscal 2012. Owner of Edina Re- tra faces a year of living dangerously. “The full extent of where we are will Burnsvilleto alty buys Connecticut Last December, the organization re- 147 not work itself out for five years,” said brokerage. D2 ported its biggest annual deficit ever. Concerts the orchestra played at orchestra president Michael Henson. In June, the band evacuates Orchestra Orchestra Hall in 2011, along with “Change is always difficult.” weighshorter Hall for a yearlong face-lift of its icon- approximately 20 in other venues. Minnesota is one of eight orchestras, online ic home on Nicollet Mall. A shortened including the St. Paul Chamber Orches- 2012-13 season opens in October in the tra, negotiating new contracts against a schoolweeks acoustically challenged Minneapolis tions begin on the musicians’ contract, national backdrop colored by bankrupt- Convention Center. which expires in September. Manage- cy at the renowned Philadelphia Orches- , Looking for savings, district may The greatest challenge comes even ment says it must resolve “unsustainable tra, a bitter strike in Detroit, declines in lengthen days, use four-day weeks. sooner. fiscal practices” by cutting costs. Musi- On Thursday, high-stakes negotia- cians hear that and wonder how the or- Orchestra continues on A11 Ø By HERÓN MÁRQUEZ ESTRADA and MARY LYNN SMITH Star Tribune staff writers

Star Tribune on As part of an effort to save $5 million iPhone, Android next year, the Burnsville School Dis- Get easy access to the MurderchargesfiledinTrayvoncase trict might give students every oth- top news of the day er Monday off or even send students by scanning with a home for the summer before Memo- QR reader the code , Shooter faces the toughest charges rial Day. above or visiting possible in killing of 17-year-old. “That’s ridiculous if you work full startribune.com/ time,” said Joy Smetanka, who has three newsapp By LIZETTE ALVAREZ and children in the district. “Every other MICHAEL COOPER • New York Times Monday? I wouldn’t do that. If they do that, they are going to have a lot of fam- have you JACKSONVILLE, FLA. – More than six Martin Zimmerman ilies moving out of the district.” heard? weeks after he shot and killed Trayvon Mar- If board members give students reg- tin, an unarmed 17-year-old with no crimi- The parents of Trayvon ular days off, Burnsville likely would The FBI hadn’t added nal record, neighborhood watch volunteer Martin,left,held hands be the first metro-area school district to its Ten Most Want- George Zimmerman was charged by a spe- Wednesday as charges and the largest in the state to use a ed list since 2009, but cial prosecutor Wednesday with second- were announced against four-day school week on a regular ba- the death of Osama degree murder and taken into custody. George Zimmerman. sis or end the school year so early. bin Laden in May The charges, which Martin’s family “This would be the first time for a made room for a new praised but called overdue, opened a new EVAN VUCCI major district to take this on,” said Ron entrant: a teacher. A2 chapter in a case that set off a searing na- Associated Press Hill, chairman of the Burnsville school tional discussion of racial profiling, Flor- board. “We just can’t keep doing things ida’s expansive self-defense laws and the case after the local state attorney stepped charges. But she made it clear she was not the same old way.” fairness of the criminal justice system. aside in the wake of criticism that the influenced by the uproar over the past six The ideas are part of a proposed The charges against Zimmerman were case had been moving too slowly. Corey weeks. “We do not prosecute by public budget plan to lower costs by cutting announced by Angela Corey, the state at- would not discuss how she reconciled pressure or by petition. We prosecute 17 school days from next year’s calen- torney for the Jacksonville area, who was the conflicting accounts of what hap- appointed as a special prosecutor in the pened or explain how she arrived at the Martin continues on A14 Ø Burnsville continues on A10 Ø

STAR TRIBUNE + STARTRIBUNE.COM NEWS TIPS COMMENTS SUBSCRIBE TO THE PAPER STAR TRIBUNE Minneapolis, St. Paul MINNESOTA’S TOP CHOICE FOR BREAKING NEWS Call 612-673-4414 Call 612-673-4000 612-673-4343 • startribune.com/subscribe Volume XXXI • No. 8 • April 12, 2012 ZSW [ C M Y K ]A14 Thursday, April 12, 2012

A14 • STAR TRIBUNE • THURSDAY, APRIL 12, 2012 hh MurderchargesfiledinTrayvoncase

ø MARTIN FROM A1 da’s expansive self-defense law HOW THE CASE UNFOLDED could make it difficult to prove based on the facts on any given a criminal case against him. case as well as the laws of the Feb. 26: Trayvon Martin, 17, is walking back from a corner The case drew attention to state of Florida,” Corey said. store in Sanford, Fla. with a bag of Skittles candy and iced tea. Florida’s so-called stand your Asked about the racial over- George Zimmerman, a resident, reports him to police and ground law, which was enact- tones of the case — Martin, who begins following him, despite pleas by a dispatcher not to. ed seven years ago after lobby- JACQUELYN MARTIN • Associated Press was black, was shot and killed by Zimmerman fatally shoots Martin. Zimmerman tells police he ing by the National Rifle Associ- Trayvon Martin’s parents, Sybrina Fulton and Tracy Martin, were Zimmerman, a Hispanic man — killed Martin in self-defense after a fight. No charges are filed. ation. The law gives the benefit joined Wednesday by the Rev. Al Sharpton in Washington. Corey said that law enforcement Early March: Trayvon Martin’s parents, Tracy Martin and of the doubt to people who claim officials were committed to jus- Sybrin Fulton, launched an online petition for state attorney self-defense, even if they are not tice for all, regardless of race, Angela Corey to prosecute Zimmerman. The post was soon fol- in their homes; it says that people Second-degreemurdercharge gender or background. “We only lowed by tweets from celebrities, including Russell Simmons, who feel that they are in danger know one category as prosecu- Mia Farrow, Cher and more, calling for justice for the slain do not need to retreat, even if it maybestrategy,expertssay tors, and that’s a ‘V,’ ” Corey said. teenager. would seem reasonable to do so. “It’s not a ‘B,’ it’s not a ‘W,’ it’s not March 9: A suit is filed on behalf of Martin’s parents for public By choosing to charge George Zimmerman with second-degree an ‘H.’ It’s ‘V,’ for victim. That’s records in the case. ‘I’m expecting a lot of work’ murder in the killing of Trayvon Martin,special prosecutor Angela who we work tirelessly for. And March 16: The 911 tapes are released, and media coverage of In this case, Zimmerman, Corey selected the toughest possible charge involving a killing short that’s all we know, is justice for case intensifies. who had founded the neighbor- of first-degree murder, which requires a finding of premeditation. our victims.” March 19: The U.S. Justice Department says it will investigate. hood watch after a string of bur- Under second-degree murder, the jury must find that a death was March 23: President Obama said the case should be investi- glaries, saw Martin, began fol- caused by a criminal act“demonstrating a depraved mind without ‘Look into Trayvon’s eyes’ gated, adding:“If I had a son, he’s look like Trayvon.’’ Florida lowing him and called 911, telling regard for human life,”said Eric Abrahamsen,a criminal defense Many legal experts had ex- Gov. Rick Scott appoints Angela Corey, a state attorney, as a the dispatcher that he appeared lawyer in Tallahassee,Fla.The maximum sentence for second-de- pected the prosecutor to opt special prosecutor. “suspicious.” (A lawyer for Mar- gree murder is life in prison;the minimum penalty is 25 years. for the lesser charge of man- April 10: Zimmerman’s attorneys say they have lost track of tin’s parents, Benjamin Crump, Dan Markel,a law professor at Florida State University, said he slaughter, which usually carries Zimmerman and have stopped representing him. said that Martin was speaking on was“very surprised”by the severity of the charges.The charge also 15 years behind bars and covers April 11: Charges filed. his cellphone at the time with his means that Zimmerman will not be entitled to be released on bail reckless or negligent killings, WASHINGTON POST girlfriend, and told her that he before his trial.Instead,his lawyer will be able to ask for what Flor- rather than second-degree mur- was being followed.) ida calls an Arthur hearing,which can take place weeks after the der, which involves a killing that The dispatcher asked if Zim- arrest,to determine whether he should be allowed to post bond. results from a “depraved” disre- more and nothing less; we just from buying Skittles and iced merman was following him. Jeff Weiner, a former president of the National Association of gard for human life. wanted an arrest. And we got it. tea at a 7-Eleven, bound for the “Yeah,” Zimmerman said. Criminal Defense Lawyers,said an Arthur hearing is“a very good If he is convicted of second- And I say, ‘Thank you, thank you, home in a gated community in “OK, we don’t need you to preview of the evidence.” He suggested that the prosecutor might degree murder, Zimmerman, 28, Lord, thank you, Jesus.’” Sanford, a small city just north do that,” the dispatcher said. have“overcharged”to retain the option,should she feel a murder could face life in prison. It is the His father, Tracy Martin, of Orlando, where he and his Zimmerman said: “OK.” conviction is slipping away, of asking the judge to instruct the jury to toughest charge he could have said: “The question I would father were guests — incited The case will probably hinge consider lesser offenses.It is also possible,he said,that she might be faced, short of first-degree mur- really like to ask him is, if he outrage and protest marches on what happened next. trying to coax Zimmerman to the negotiating table to plead guilty to der, which would have required could look into Trayvon’s eyes across the country. Zimmerman’s new attorney, such a lesser charge.But,he added,it is impossible to say whether it a finding of premeditation — and see how innocent he was, Zimmerman, the founder of Mark O’Mara, said Zimmerman is overly tough,since evidence has not yet been produced. something that all sides agreed would he have then pulled the the local neighborhood watch, will plead not guilty and will in- The case will almost certainly include a pretrial hearing to de- was not present in this case. trigger? Or would he have just called 911 that evening to report voke the stand your ground law. termine whether the state’s stand your ground law, which grants Martin’s parents, Sybrina let him go on home?” that Martin looked like “a real He asked that people not jump to broad protections to people who claim to have killed in self-defense, Fulton and Tracy Martin, Zimmerman turned him- suspicious guy.” Some ques- conclusions and said he is “hop- applies;if the judge finds that Zimmerman acted appropriately, the praised the decision to arrest self in, arriving at the Semi- tioned whether Martin attract- ing that the community will case will end there.If the judge decides that the protections of the law and charge Zimmerman at an nole County jail around 8:25 ed Zimmerman’s attention sim- calm down” now that charges do not apply, the case will go forward.The question of self-defense emotional news conference in p.m. and stepped out of a black ply because he was black. Oth- have been filed. He said, “I’m ex- can also be brought up again at trial.That could lead to a fallback Washington, where they had SUV in the custody of law en- ers were outraged by the slow pecting a lot of work and hope- position for the jury — if allowed by the judge — of a lesser verdict of been meeting with their law- forcement agents. reaction of the local police and fully justice in the end.” manslaughter should the jury decide that Zimmerman sincerely but yers and supporters. The killing of Trayvon Mar- prosecutors, who did not im- unreasonably believed that he was appropriately using lethal force to “We simply wanted an arrest,” tin — who was shot on the eve- mediately arrest and charge The Associated Press contributed to this defend himself,which is known as“imperfect self-defense.” Fulton said. “We wanted nothing ning of Feb. 26 as he returned Zimmerman, saying that Flori- report. NEW YORK TIMES BoardisinvestigatingDunn’sconductwithfemalestafferatBestBuy

ø BEST BUY FROM A1 16.5 percent a year. The compa- wasn’t watching from the side- McCollam and former Ra- edged Dunn’s resignation was plan, Mikan said the senior ex- ny expanded from almost 600 lines,” he said. dioShack CEO Julian Day. a distraction to the company. ecutives are developing a new largest restructuring plan in stores in North America in fis- McCollam is known for “I know the news of Brian’s “blueprint for growth.” the company’s history, which cal 2002 to nearly 3,900 locations Moving forward helping Williams-Sonoma departure was a surprise ... [and] “This blueprint will be a lon- included store closures, layoffs in 13 countries. Since Anderson Already, analysts have build a successful online busi- likely raised additional questions ger-term plan designed to cap- and other cost reductions. In re- stepped aside, the company’s thrown out a number of names ness. Day’s expertise is cost- for many of you,” Mikan wrote. italize on the actions we are sponse to a Star Tribune inqui- stock has tumbled 35 percent. as candidates to replace Dunn, cutting, something that might “I’m very aware that was difficult already implementing,” Mi- ry Tuesday, Best Buy acknowl- Anderson said it has pained including former Best Buy ex- complement Best Buy’s plans to read and experience.” kan wrote, “and position Best edged that the board of direc- him to watch the company, ecutive and current Advance to reduce expenditures. With that said, Mikan said, Buy for sustained, profitable tors audit committee, which based in Richfield, struggle the Auto Parts CEO Darren Jack- In a memo sent to employ- the company is moving for- growth in the years ahead.” normally oversees the compa- past three years. Best Buy has son, former Williams-Sonoma ees Wednesday, interim CEO ward. In addition to the previ- ny’s finances, was investigating faced tough times before, but “I chief financial officer Sharon G. “Mike” Mikan acknowl- ously announced restructuring Thomas Lee • 612-673-4113 Dunn’s “personal conduct.” Dunn took over as Best Buy’s CEO in June 2009, re- placing Brad Anderson, who had served in that role for sev- en years before retiring. When contacted Wednesday, An- derson left open the possibil- ity that he could return to the company if asked. Anderson told the Star Tri- bune that he would not pur- sue his old job. However, when

asked whether there was a sce- s. nario in which Best Buy could retain his services, Anderson r didn’t rule it out.

“I would be hard-pressed to wa do something that was not in the best interest of the compa- re ny,” he said. “I don’t know.”

Caught off guard In March, Dunn said he was determined to lead the company through the deepest restructur- ing in its history — a plan which included closing 50 big-box stores across the country and eliminating $800 million in costs over the next three years. An- derson said he hasn’t spoken to Dunn in a while and was caught off guard by the resignation. PresentthiscouponatyourCenturyLink storeand askhow to geta “I was very surprised that $150CenturyLinkTM Visa® PrepaidCard Brian was leaving the compa- ny in the middle of the trans- when youbundle3services. formation,” Anderson said. High-Speed Internet +Verizon Wireless +athird serviceofyour choice Anderson enjoyed a suc- cessful 36-year career at Best Buy, the nation’s largest elec- tronics retailer. He became the key driver for the compa- ny’s shift away from a strate- gy that pushed high-tech gad- Visit your CenturyLinkstore andget rewarded. gets to one in which consum- CenturyLink in theSkyway –NexttoSubway–612.332.8552 ers’ needs become the core fo- cus — a mission it called “cus- NorthtownMall –Located in Center Court–763.795.8082 tomer centricity.” R idgedale Center –CenterCourt near AppleStore –952.545.1093 The strategy led Best Buy to expand its Geek Squad computer services as well as add a host of other services — from installing LimitedTimeOffer – Offeravailabletonew or existing (who areeligible)residential CenturyLink™ High-Speed Internet customerswho add two(2) newqualifyingservices from or throughCenturyLink.Qualifyingservices vary by location,and may requireatermagreement, specificpackageorplansubscription, activationfees,installationfees, terminationfees, etc. Allmay apply, dependinguponservices andplans selected to qualifyfor offer.One (1)offer perhousehold.Anadditionalmonthly fee(includingprofessionalinstallation, if applicable) andashipping andhandlingfee will applytocustomer’s modemorrouterfor High-Speed Internet.Offerscannotbecombined with otherpromotions. home-theater systems to setting Existing customerswill lose currentdiscounts by subscribing to this offer. Current Pricefor Life Customers – Acceptance of this offerwill automaticallycancelthe Pricefor Life guaranteeand customer’s High-Speed Internet servicecould be subject to anyfuture rate increases. VerizonWireless – Activation fee/line: $35. IMPOR T ANT CONSUMER INF O RMA T I O N – Subject to Cust Agmt,Calling Plan,&credit approval. Up to $175 early terminationfee ($350for advanced devices). Add’l$20 upgrade fee may apply. Offers &coverage,varying by svc,not available everywhere;see vzw.com. By activatingVerizonWireless serviceand acceptingadiscountonCenturyLink service, up smartphones in stores. youconsenttoVerizonWireless sharingyouraccountinformationwithCenturyLink to theextentnecessary to determineeligibility forthe discount. G eneral – Services andoffersnot available everywhere.CenturyLink may change or cancelservices,orsubstitutesimilarservices,atits sole discretionwithout notice.Offer,plans,and statedrates aresubject to change andmay vary by servicearea.Requires credit approval anddeposit may be required.Additionalrestrictions apply. Terms a nd Conditions – Allproducts andservices listed aregoverned by tariffs, termsofservice,orterms andconditions posted at www.centurylink.com. T axes,Fees ,and S urc har g es – Applicabletaxes, Under Anderson’s leader- fees, andsurcharges include aone-timeactivation fee, state andlocal feesthatvarybyarea andcertain in-state surcharges.Taxes,fees, andsurcharges applybased on standard monthly,not promotional, rates. $150 Century Lin k Vis a ® Prepaid C a rd offer–Available to neworexistingsubscribers to CenturyLink™ High-Speed Internet 1.5Mbps speed tier or faster service. Requires additionalpurchase of anytwo (2)ofthe following products:[1] qualifying home phone service, [2] DIRECTVprogrammingpackagewitha24-month term -or- [3]new VerizonWireless customer with 2-year activation. Existing DIRECTVand VerizonWireless servicesubscribers arenot eligible;onlynew subscriber ship, Best Buy’s annual sales in- purchases qualify. Offernot available to customerswithCenturyLink™Internet basicservice (without features)orwithother ISPs.Customer mustactivateservices within thirty (30) daysoforder andmustretain alleligible services foraminimum of eight (8) weeks afterservice activation. Customerwill receiveapostcard within three(3) to four (4) weeks of ordering services andwill be required to complete online redemption formwithin sixty(60)daysafter orderingservices.Visaprepaid card will be sent six(6) to eight (8) weeks afterall eligibility,redemption andretentionrequirements havebeenmet,includingeight-weekservice hold requirement. (Maximum valueofcards issued under offer creased from $17.7 billion in fis- limited to $150.) Offercannot be combined with otherCenturyLink™High-Speed Internet promotions or reward/award/promotion cards/codes unless otherwiseallowed.Visaprepaid card is not redeemable forcash or usable at anyATM.Terms andConditions applytothe card.Subject to applicablelaw,amonthly maintenance fee of $3 (USD)applies, butiswaived forthe first six(6) monthsafter thecardisissued. Your card is issued by J.P. Morgan ChaseBank,N.A.,pursuanttoalicensefromVisaU.S.A.,Inc.Prepaid cardscan be used at anymerchantsthatacceptVisadebit cards. CenturyLinkreserves theright to substituteacheck of equalvalueinlieuofaVisaprepaid card at itsdiscretion. cal 2002 to $40 billion in 2008. Limited time offer. ©2012CenturyLink,Inc.All RightsReserved.All othermarks areproperty of theirrespective owners.VerizonWireless andthe VerizonWireless logosare trademarks of VerizonTrademarkServices LLC. Earnings grew at an average of ZSW [ C M Y K ] A1 Sunday, April 15, 2012 hhhhhh variety sports travel Thinspo posts: SPIELMAN SET TO Local flavor Prodding kids found in the into illness? REMOLD VIKINGS cocktail glass

74°/ 60° Thunder today ¬ Flurries Monday? B12

APRIL 15, 2012 Sunday STARTRIBUNE.COM

X STAR TRIBUNE EXCLUSIVE marching home life after the wars X A STAR TRIBUNE EXCLUSIVE SERIES VET HEARD VOICES, SOUGHT HELP – AND WAS BestBuydeals TURNED AWAY tiedtoinsiders drawscrutiny

- Analysts point to business arrangements between retailer and its board members, including founder Richard Schulze.

By PAUL McENROE, TONY As Best Buy KENNEDY and PATRICK KENNEDY tries to move Star Tribune staff writers forward, the spotlight will While outside investiga- definitely be tors probe allegations of mis- conduct by former Best Buy Schulze on leaders. A8 CEO Brian Dunn, some in- dustry analysts suggest the cant concerns about nepotism retailer’s troubles go deeper and business arrangements it than the question of whether considered “inappropriate for Dunn used company resourc- a public company.” es to pursue an inappropriate As outlined in public docu- relationship with a female em- ments, those dealings include ployee. six-figure jobs for Schulze For years, analysts have ex- family members, real estate pressed concern about the in- and corporate aviation agree- sular nature of the company’s ments that steer nearly $2 mil- board and certain business lion a year to separate busi- dealings involving founder nesses owned by Schulze, mil- and chairman Richard Schulze, lions spent on products from a members of his family and company owned by Schulze’s longtime board members. brother and spending on ser- In March 2010, the indepen- vices from businesses affiliat- dent research firm Manage- ment CV Inc. raised signifi- Best Buy continues on A9 Ø

BRIANPETERSON • [email protected] Iraniannucleartalks Four days after the Minneapolis VA declined to admit Blake Uddin,the Iraq war vet stole a car, crashed it and ran into rush-hour traffic. advanceto2ndround As 1 in 3 Iraq vets seek mental health care, tion and called the VA’s lack of action “perplexing.” VA faces criticism over delays and shortages. “I’ll take responsibility for it,” Uddin - West lauded Iran for perts will draw up a concrete says now of the morning last year that “serious engagement,” but agenda for the meeting to be By MARK BRUNSWICK • [email protected] changed his life. “But light needs to be held in Baghdad. shed that things could have changed.” heavy lifting left for later. “We expect the subsequent fter six sleepless nights, Four days later, with the voices now The U.S. Department of Veterans By STEVEN ERLANGER meetings will lead to concrete Blake Uddin knew he telling him, “Run ... run ... they’re com- Affairs is facing unprecedented de- New York Times steps towards a comprehensive was in trouble. ing,” he stole a car, crashed it and spent mands on its mental health system. negotiated solution,” she said. He was hearing voic- desperate minutes rushing across Like Uddin, about one of every three ISTANBUL – In a rare show of The decision to meet again A es and feeling “clairvoy- four lanes of morning rush-hour traf- soldiers returning from Iraq was seen unity, Iran and six world pow- appeared to reflect what ant.” A sergeant in the Wisconsin Na- fic. Footage from an overhead traffic in a VA facility for mental health treat- ers agreed Saturday to hold a European and U.S. officials saw tional Guard with two tours of duty in camera shows him stepping in front ment within a year of returning. new round of talks on May 23 as a serious commitment from Iraq, Uddin drove himself to the Min- of a semi-truck slowing to keep from Nationally, there is growing con- that would be aimed at secur- Iran to negotiate. However the neapolis Veterans Affairs hospital, striking him. Then he is hit by a van cern that the VA is failing its mission. ing assurances that its nucle- initial statements after the talks where he expected to be admitted. and thrown 50 feet into a ditch. It’s facing criticism for staffing short- ar enrichment program will ended did not suggest that any Instead, after a two-hour exam, doc- A psychologist who later exam- ages and delays in seeing veterans not lead to nuclear weapons, concrete proposals or confi- tors said he was not a threat to himself ined him said Uddin was experienc- worried about their mental state. European Union leaders said. dence-building measures had or others, even though they called his ing “an acute, significant, psychotic “There is a serious systemic prob- “We want now to move to a been made or agreed to. Guard unit and suggested he not be al- break.” The psychologist took the un- lem with access to mental health care,” sustained process of dialogue,” There will be enormous lowed around weapons. He was told to usual step of criticizing the VA for not said Catherine Ashton, the pressure on the parties for the come back the following week. admitting him or giving him medica- Vets continues on A10 Ø E.U. foreign policy chief who Baghdad meeting, since very led the talks, the first negoti- little of substance appeared ations with Iran in 14 months to have been discussed here. Blake Uddin takes us through his near-death experience on Hwy. 52 at startribune.com/video. over its nuclear program. In the meantime, she said, ex- Iran continues on A10 Ø Morebuyersareseeking Mayo team to explore body’s limits in lab on Everest

By MAURA LERNER his quest to Mount Everest. homesin‘shadowmarket’ [email protected] Johnson, 54, is leading a team of scientists to “the By JIM BUCHTA where buyers and sellers want- Bruce Johnson is a soft-spo- promised land,” as one col- [email protected] ed to keep the sale hush-hush. ken man who’s drawn to ex- league calls it, to study the ex- But lower-priced houses are tremes. traordinary ways the body can House hunters frustrat- becoming a bigger part of the He once camped on the edge change on the highest moun- ed with the area’s scant sup- mix because even those are in of a soaring cliff in Argentina, tain on Earth. ply of homes have shifted their short supply. with 40-mile-per-hour winds In Nepal, Johnson and his search from the streets to un- Working behind the scenes threatening to blow his tent colleagues will trek on foot for derground. gives buyers access to the away. “Like sitting behind a jet 10 days, to an elevation of 17,500 More buyers are targeting deepwellof TwinCitieshome- plane,” he says. feet, to set up a Mayo outpost at homes that haven’t yet hit the owners who would like to sell, As a scientist at the Mayo Everest’s base camp. market, a trend agents say will but don’t think the market is Clinic, Johnson has gone to “We’re bringing 1,300 pounds grow as inventory shrinks and healthy enough to list. Agents some of the most forbidding of medical equipment on the the mismatch of what’s avail- say they identify these sell- places on the planet (includ- backs of yaks,” said Johnson. able and what’s desired con- ers through referrals, as well BRIANPETERSON • [email protected] ing the South Pole) to explore “We’re essentially creating a re- tinues. as track those who listed their Derek Campbell of North Face completed a battery of base-line one question: “What are the mote laboratory up there.” Such back-pocket deals used tests at the Mayo Clinic to prepare for the expedition. Mayo’s Alex extremes that the human body to involve mostly luxury homes Homes continues on A11 Ø Kasak, right, and Bryan Taylor, back center, also will take part. can endure?” Monday, he takes Everest continues on A12 Ø

top news local news Wave of storms Highest hopes Secret Service investigation Time to undo Agents questioned about accusations hits the Plains for astronomy involving prostitution in Colombia. A12 1978 decision? Iowa hospital damaged; Up 16,597 feet, researchers The Titanic, a century later Minneapolis debates many states on high alert. A7 study universe’s origins. A12 Time can’t dull fascination with ship. A6 Lake Street Kmart, again.

STAR TRIBUNE + STARTRIBUNE.COM NEWS TIPS COMMENTS SUBSCRIBE TO THE PAPER STAR TRIBUNE Minneapolis, St. Paul MINNESOTA’S TOP CHOICE FOR BREAKING NEWS Call 612-673-4414 Call 612-673-4000 612-673-4343 • startribune.com/subscribe Volume XXXI • No. 11 • April 15, 2012 ZSW [ C M Y K ]A9 Sunday, April 15, 2012

h SUNDAY, APRIL 15, 2012 • STAR TRIBUNE • A9

BEST BUY: THE WEEK IN REVIEW

TUESDAY WEDNESDAY THURSDAY FRIDAY • Best Buy delivers a morning an- • Star Tribune confirms that Best Buy is inves- • Best Buy says it will release to the public its findings of the investi- • Best Buy nouncement that the company’s CEO, tigating allegations that Dunn, who is married gation into Dunn in a matter of weeks. stock closes Brian Dunn, resigned by“mutual with three children, used company resources to • Company officials say a permanent CEO will be in place in six to at $22.04 a agreement.” carry out an inappropriate relationship with a nine months, and a search committee will be led by Kathy Victor, share, down G.“Mike”Mikan, a former executive female employee. a board of director who is founder and president of an executive 40 cents from with UnitedHealth Group, is named • Mikan writes a memo to employees that says coaching firm. Mikan is named as a candidate for the position. its opening interim CEO. the company is developing a new“blueprint • Star Tribune confirms that Best Buy had retained an outside legal on Tuesday. • Company later confirms an ongoing for growth.” The initiative follows a previously team to lead the Dunn investigation — Tom Strickland, who served investigation into Dunn’s“personal announced restructuring that includes $800 mil- as U.S. attorney for Colorado, and William McLucas, a former director conduct,”and that Dunn chose to re- lion in cost reductions over the next three years. of enforcement for the Securities and Exchange Commission. sign before the probe was completed. Dealswithtiestoinsiderscomeunderfire

ø BEST BUY FROM A1 « ONE OF THE GOLDEN RULES ABOUT BEST BUY Headquarters: Richfield ed with board members. IN BUSINESS IS THAT WHEN Status: Largest consumer electronics retailer in U.S. Best Buy has regularly dis- YOU’RE WINNING, YOU HAVE Stores: 1,100 (U.S.) closed these arrangements in Finances: Revenue of $50.7 billion; net income of -$1.23 billion (fiscal year 2012) filings with the Securities and FEW CRITICS. » Employees: 167,000 (Minnesota: 7,850) Exchange Commission. Some Renny Ponvert, founder of Management CV History: Founded in 1966; originally called Sound of Music; changed name to Best Buy Co. Inc. in 1983. analysts have directed sharp Brands: In addition to Best Buy’s stores and online operations, brands include Geek Squad, Audio Vi- criticism at Best Buy for agree- ly resigned Tuesday in connec- ever, Best Buy was still posting sions, Carphone Warehouse, Five Star Appliance, Future Shop, Magnolia Home Theater, Pacific Sales, ing to the deals. tion with an internal investiga- strong results at that time. Best Buy Mobile and Best Buy for Business “Even if these many transac- tion of his behavior in regards “One of the golden rules in Ticker symbol: BBY tions are done at truly market to a relationship with a female business is that when you’re rates, as the Board asserts, they employee. winning, you have few critics,” are certainly rife with potential Greg Hitt, a spokesman for Ponvert said. million, documents show. served as a Best Buy director 2007, when Mikan was execu- conflicts of interest,” Manage- the Best Buy board, issued Many of the conflicts, listed Susan Hoff, Schulze’s daugh- since 2008. The company buys tive vice president and chief fi- ment CV founder Renny Pon- a one-sentence statement as related party transactions, di- ter who spends a significant employee medical plans from nancial officer. vert wrote. Saturday in response to Star rectly involve Schulze. He could amount of time at a home in UnitedHealth — $175 million Elliot Kaplan, a founding di- Ponvert said in an inter- Tribune questions about the not be reached for comment. California, is founder, chair- worth in fiscal 2009. About $14 rector who left the board last view Saturday that it’s highly company’s financial relation- woman and CEO of the Best million of that was for admin- June, is a partner with the law unusual “for such a big dom- ships with Schulze and relat- Arrangement details Buy Children’s Foundation. In istrative and other services. firm of Robins, Kaplan, Miller inant public company to have ed parties. “The company ful- SEC filings by Best Buy addition, she serves as a Best Theproxystatementsaidthe & Ciresi LLP, the company’s such a long list of unflatter- ly complies with all legal re- show that the company leases Buy vice president, receiving amounts paid to UnitedHealth outside counsel. The company ing behaviors.’’ He believes it quirements, including public two of its stores from Schulze, a base salary for fiscal 2011 of were an “insignificant portion’’ paid $12 million in legal fees to stems from a corporate struc- disclosure, regarding related- an arrangement that dates to $242,000. The proxy statement of consolidated revenue of Best the Robins firm in 2011. ture where Schulze remains party transactions,” the state- 1990. In 2011 alone, the com- said she was eligible for a cash Buy for each of the past three Jane Kirshbaum, Kaplan’s chairman of the board and still ment said. pany paid $1 million in rent for bonus with a “target payout’’ of years. daughter, is one of Best Buy’s controls 20 percent of Best Buy The scrutiny of Best Buy’s the two stores. The leases ran nearly half of her salary. “In addition, Mr. Mikan senior corporate attorneys and stock, a stake worth about $1.5 dealings comes at pivotal mo- through 2011 and 2018, respec- Son-in-law Duane Hoff did not influence or partici- works in the human servic- billion. ment for the Richfield-based tively. worked at Best Buy in the early pate in negotiating our agree- es department. Her total cash “It’s really the ‘Schulze consumer electronics retailer, Schulze also benefits from 2000s, making $160,000 as vice ment with UnitedHealth,’’ the compensation for fiscal 2011 Show,’” Ponvert said. “This the nation’s largest, with more Best Buy’s patronage of his cor- president for business devel- proxy said. was $193,946. is probably a more egregious than 7,800 Minnesota em- porate travel company, Minne- opment in his last year. While the company has tak- Michael J. Stillman, Kaplan’s case than some, but it’s not ployees. It announced a ma- apolis-based Best Jets Interna- en pains to distance itself from stepson, was vice president for that unusual when you have jor restructuring shortly be- tional. According to Best Buy’s Connections to the board the inquiry into Dunn’s behav- Best Buy Connect until he left such a dominant co-founder. fore Dunn’s departure, amid proxy statements, it leased air- Best Buy also regularly has ior by hiring an outside legal the company several months Politely, I’m not sure he cares questions about whether it planes and chartered aircraft had business relationships team to perform the review, ago. Stillman’s total cash com- much about what other peo- can recover its sales momen- services from Schulze over the with board members and some one of the lawyers on the team pensation for fiscal 2011 was ple think.” tum from competitors such as past five years for $3.56 million. of their family members. has connections to Mikan and $284,008. Amazon.com and Wal-Mart. “Our senior management G. “Mike” Mikan, now in- UnitedHealth. A pivotal time Ponvert said the combina- generally use the airplanes terim CEO of Best Buy, is a The attorney, Tom [email protected] • 612-673- The company’s board is tion of Best Buy’s sagging prof- when it is more economical or former senior executive of Strickland, was appoint- 7926 filled with longtime friends of its and the cloud created by practical than flying commer- UnitedHealth Group who has ed executive vice president [email protected] • 612-673-4213 Schulze, said Mike Pachter, an Dunn’s sudden departure could cial airlines,’’ the proxy state- served on the audit commit- and chief legal officer of [email protected] • 612-673- analyst with WebBush Securi- give new life to the uneasiness ment said. tee at Best Buy. Mikan also has UnitedHealth Group in May 1745 ties, based in Los Angeles. that has lingered among some Best Buy purchases store He said the board “defers to outsider observers. fixtures from Phoenix Fixtures Dick Schulze,’’ the first of just As long ago as 2006, the Wall Inc. of Roberts, Wis., which three CEOs, including Dunn, Street watchdog group former- is owned by Schulze’s broth- to head the company in its ly known as Corporate Library er. The total amount paid to 46-year history. Schulze was a was concerned about the issue Phoenix in a five-year period ?1- )400-

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