Barnes & Noble’s (BKS) online CEO left the company today. Marie J. Toulantis ran the part of the company on which its future is largely dependent. Call it a metaphor. BKS has to be a major force on the internet, and it is not.

BKS shares are down 25% this year, and it is any wonder? The company’s last quarter was pathetic. Barnes & Noble had an operating loss of $6.4 million on $1.158 billion in revenue. The firm no longer has any margins. As long as most of its sales are through stores, that won’t change.

Barnes & Noble has simply been a failure online. As long as that is true, the company has very limited upside. Barnes & Noble.com sales increased only 6.2%, to $99.6 million during the 13 weeks ended May 3, 2008.

At least someone invovled in BKS is doing well. CEO Steve Riggio made a base salary of $800,000 in the company’s last fiscal year and his total compensation was almost $3.4 million.

For a firm in as much trouble as Barnes & Noble, that is a farce. He should be making $1.

Douglas A. McIntyre

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