Tags: Johnson | pay | Penney | stores

J.C. Penney CEO’s Compensation Cut to $1.89 Million in 2012

Wednesday, 03 Apr 2013 01:56 PM

J.C. Penney Co. Chief Executive Officer Ron Johnson, who is struggling to overhaul the department-store company, had his total compensation cut to $1.89 million last year.

Johnson, 54, received $1.5 million in salary and $344,000 for personal use of the corporate aircraft, according to a filing today. The former Apple Inc. retail chief was awarded $53.3 million in salary, bonus, stock awards and other compensation in 2011, the year he took over as CEO of the Plano, Texas-based retailer.

Johnson has come under fire after J.C. Penney’s annual sales slid 25 percent to $13 billion, the lowest since at least 1987, during his first year at the company. A shift to everyday low prices, marketing missteps and an attempt to transition away from sales and coupons have alienated longtime shoppers. Johnson has been working to improve results by adding boutiques and new items from brands such as Martha Stewart and Joe Fresh.

Johnson was recruited to J.C. Penney by billionaire investor Bill Ackman, whose Pershing Square Capital Management LP is the company’s biggest shareholder, with an 18 percent stake. Ackman waived his compensation for his work as a J.C. Penney board member last year.

‘Huge Miss’

Chief Financial Officer Kenneth Hannah received $5.26 million in total compensation, which included $624,621 in salary, a $2 million bonus and about $2.5 million in stock awards, according to the filing.

Last month, Hannah said J.C. Penney was aiming to reverse its “huge miss” with core customers last year by expanding private-label lines such as St. John’s Bay and reviving promotions.

Johnson said last month that 19,000 J.C. Penney employees have lost their jobs in the past year as his turnaround struggles to gain traction. The following week, the company said it was cutting an additional 2,200 jobs to trim costs.

Last month, Caribou Coffee Co. announced it will no longer pursue plans to open shops inside J.C. Penney stores, about six months after Johnson cited the company as a potential partner.

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J.C. Penney Co. Chief Executive Officer Ron Johnson, who is struggling to overhaul the department-store company, had his total compensation cut to $1.89 million last year.
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Wednesday, 03 Apr 2013 01:56 PM
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