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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsJC Penney CEO's Pay Slashed As Company Struggles; $1.9m in compensation for 2012, down from $53.3m
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.
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http://money.cnn.com/2013/04/02/news/companies/jc-penney-ceo-pay/
raccoon
(31,092 posts)of course.
Ruby the Liberal
(26,217 posts)$53.3 million is completely obscene for one person to sit at a desk and set strategy. Glad that bit them in the ass last year. Maybe this will become the 'new normal'.
W_HAMILTON
(7,813 posts)...seems as much based on pure luck as it does intelligent management.
If Apple can go on without Steve Jobs, (insert random company) can go on without (insert random executive).
arcane1
(38,613 posts)There's part of the problem right there!
hobbit709
(41,694 posts)lpbk2713
(42,696 posts)Maybe if he eats ramen for a while ...
OMFG
NickB79
(19,114 posts)Soon he may not be able to feed his wife and children the filet mignon they so desperately need, or keep a 12,000 sq. ft marble roof over their heads.
Purveyor
(29,876 posts)ohheckyeah
(9,314 posts)has been trying to do everything on the cheap for years now. They put out clothes that are seasons old hoping to sell them, and the quality is no longer there. It used to be my go to place for decent clothes and leather purses and belts....good luck finding any of that any more at JC Penney. The stores here look like low rent discount stores.
Agschmid
(28,749 posts)ohheckyeah
(9,314 posts)life's tough.
Sadiedog
(353 posts)LiberalEsto
(22,845 posts)I happened to go into a Penney last week, for the first time in a couple of years. They had a lot of stuff on clearance and every bit of it was garish and hideous. I wouldn't wear any of it if it were given to me for free.
JC Penney used to offer reliable, decent-quality items. Not flashy, but nice enough. Now it's all overpriced trash, ever since that hedge fund nut took it over.
Target has gone a somewhat similar route with clothing in the past 7 or 8 years. Their clothes are nicer looking than Penney, but everything is flimsy and feels like it would fall apart after a single wearing. I remember buying clothes from Target that lasted for years, like a pair of Cherokee jeans I had. The clothes at Kmart are definitely better quality than Target now.
JHB
(37,133 posts)$1.9 million? How do they expect him to survive on such peasnant-droppings!? Why, if they don't offer more then he might just walk off with the talents that were so obviously worth 26 times that much just last year!
Honestly, this has me so flustered I have to sign off an go down to my stables to watch some nice, soothing horse-dancing.
Initech
(99,915 posts)Could these companies be in financial trouble *BECAUSE* of obscene executive salaries? If they're hurting that much financially why does the CEO and executive board make $50 - $60 million a year? Where does this money come from?
Oh and I don't feel sorry for these criminals one bit.