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RadioShack to Probe CEO’s Record

From Reuters

The board of RadioShack Corp. said it had hired a lawyer to investigate admissions by Chief Executive David Edmondson that he had lied about his academic record.

The company’s statement, released late Wednesday -- along with newspaper reports that Edmondson had been involved in several alcohol-related driving incidents -- left analysts and legal experts wondering whether he could survive in his position.

“Although these things are never for sure, I think the most likely outcome here is the board will ask for his resignation,” said Stephen Fink, a partner at law firm Thompson & Knight in Dallas.

Edmondson’s disclosure comes as RadioShack starts a two-day meeting with investors to detail plans to get the company back on track. Last month the retailer said it would miss 2005 earnings targets.

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Shares of RadioShack fell 52 cents Thursday to $20.75.

Edmondson issued a statement Wednesday admitting that he erroneously said he had earned a bachelor of science degree. Errors in Edmondson’s resume were first reported by the Fort Worth Star-Telegram.

A spokeswoman for Fort Worth-based RadioShack declined to comment on the DWI charges.


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