http://www.nytimes.com/2013/04/09/business/ron-johnson-out-as-jc-penney-chief.html?_r=0
This is a news report on the ouster of the CEO of J.C. Penny, Ron Johnson. He has been fired and replaced by his predecessor. This decision comes following his non-performance in the task of turning around the struggling company.
His strategies had been ineffective in increasing the revenue or profits for J.C. Penny. Under his leadership, the sales of the giant retailer declined tremendously and its competitors (Macy's, Kohl's) reported far better financial statements.
Ron Johnson had to face a 97% pay cut for the 2012 accounting year (down to $1.9 million). He also did not receive any stock options or bonuses. His predecessor, Myron Ullman, has been re-appointed as the CEO.
It would be interesting to see whether the return to previous leadership would change the financial health of the company.
This is a news report on the ouster of the CEO of J.C. Penny, Ron Johnson. He has been fired and replaced by his predecessor. This decision comes following his non-performance in the task of turning around the struggling company.
His strategies had been ineffective in increasing the revenue or profits for J.C. Penny. Under his leadership, the sales of the giant retailer declined tremendously and its competitors (Macy's, Kohl's) reported far better financial statements.
Ron Johnson had to face a 97% pay cut for the 2012 accounting year (down to $1.9 million). He also did not receive any stock options or bonuses. His predecessor, Myron Ullman, has been re-appointed as the CEO.
It would be interesting to see whether the return to previous leadership would change the financial health of the company.
I do not see this changing of administrative power helping out J.C. Penny in the future. Rehiring an ex-CEO seems like a foolish choice and even if their image is revamped, consumers already seem to have a solid view of the types of products and prices J.C. Penny has. I do not think they will be able to keep up with their competitors at this point in the game and I will be interested to see where this change will take the company.
ReplyDeleteI would have to agree with Hannah. Consumers already have an image of J.C. Penny and it's products set in their heads. Competitors such as Macy's have leaped ahead and are able to offer better quality products for similar prices. If J.C. Penny wants to come back, they have a huge task ahead of them.
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