J.C. Penney CEO's pay slashed as company struggles By James O'Toole @CNNMoney April 2, 2013: 6:47 PM ET NEW YORK (CNNMoney) J.C. Penney had a rough 2012, and it was reflected in Ron Johnson's paycheck. The department-store chain revealed Tuesday that Johnson, its CEO, received a total of $1.9 million in compensation for 2012, down from $53.3 million in the year prior. None of the company's senior executives received bonuses, J.C. Penney said in a securities filing, "due to the company's financial results versus its goals." Johnson's compensation dropped sharply from 2011 to 2012 in large part because he received a special $52.7 million stock award upon joining the company. He did not receive any stock award for 2012, and got only 44% of his target cash compensation in view of the company's poor results. JCPenney (JCP, Fortune 500) shares have plunged nearly 60% over the past year as Johnson -- a former Apple (AAPL, Fortune 500) executive who spearheaded the tech giant's retail strategy -- has struggled to lead a turnaround effort. He took over at J.C. Penney in November of 2011 and has since announced a series of new initiatives including overhauled prices, redesigned store layouts, and even free haircuts for kids. So far, the results have been dismal. The company has been suffering steep losses, bleeding $427 million in the fourth quarter as sales fell 28% versus a year prior. http://money.cnn.com/2013/04/02/news/companies/jc-penney-ceo-pay/
When I saw the commercials for JCP back about a year ago I said what are they doing, this is going to fail, and it did. The retail market is so fast paced now a days that it seems anyone can be in this business of buying and selling clothes, just go online, there are hundreds and hundreds of online retailers, you can find a new site every day selling clothing. As for getting the apple guy in there, really? Did they think that was going to work, just because it works for one brand doesnt mean its going to work for another! Free haircuts, really? Doesnt sound like a bad idea but how many went for the free haircuts and didnt spend a dime on clothing....unless for every $50 you spend got you a free haircut! I dont know if this company is done with, but I can name a few others who will be going in this direction as well, Radio Shack, Best Buy, Barnes and Nobles, and probably a few other retail names I cant think of right now!
The modern American corporate structure is a failed model. It is only about wealth redistribution to the elite. Otherwise how is this dipsh!t worth $53m??? I am a capitalist and that is why this is why I resent these halfwits cashing in while the rest of us have to be a bloody genius and a half to earn this sort of money.
1stly what kind of company is jcpenny, some kind of clothing company?? As here in the UK no-one has even heard of this company, would just be regarded as some kind of 'dollar-store' due to having the word penny in it. But 2ndly why the f**k do you guys even care?? You are meant to be traders ffs, not moralists.
I don't know what the OP is complaining about. The CEO's compensation dropped by 95%, that is a pretty big punishment for the performance... So the title is hugely misleading, even the article says: "J.C. Penney had a rough 2012, and it was reflected in Ron Johnson's paycheck." Exactly. Or if you complain, make sure there is something to moralize about...