Ron Johhnson Ousted as CEO of JC Penney

[joeybee12]

JC Penney CEO Ron Johnson, who twice tried to revamp the retailer, is out after sales dove 25 percent last year, a source familiar with the situation said. Former CEO Mike Ullman will rejoin the company.

Johnson, a former Apple executive, had come under fire for his plans to revitalize the 110-year-old retailer by instituting a no-sale strategy and bringing in more fashionable clothing from edgier designers such as Betsy Johnson. That strategy hasn't yielded better results.

Ullman was CEO at the Plano, Texas-based retailer from Dec. 1, 2004 to Oct. 31, 2011 when Johnson replaced him.

Following the news of Johnson's ouster on Monday, shares spiked nearly 10 percent. JC Penney stock is trading 1.5 percent higher.

http://www.nbcnews.com/business/third-jc-penney-makeover-ousting-ceo-ron-johnson-1C9268739

Kind of surprised a corporation actually punished a CEO and didn't reward him/her for failure...alhtough JC Penney's situation got really bad.

[BlueStreak]

1. This is why capitalism is way past its prime

What a messed up company.

1) How could they let a new guy with no experience in this sector make massive changes without some proof / testing?

2) Last week, they cut his pay, but left him in his job, and this week they fired him?

3) He cashed in on millions with options he was granted upon joining the company. I thought options were supposed to incentivize performance, but in his case they were abused to be more like a signing bonus -- all at cap gains rates, of course.

4) And then they reinstate the PRIOR CEO? What !!!!!!

5) And why is a hedge fund manager picking the CEO in the first place?

[joeybee12]

2. Their strategy shows incredible ignorance about who their customer base is...nt