68.1 F
Fort Worth
Wednesday, September 23, 2020
- Advertisements -
Business J.C. Penney’s reinstalled CEO eyes big pay raise

J.C. Penney’s reinstalled CEO eyes big pay raise

Other News

Petalo, not Charmin: Virus brings Mexican toilet paper to US

By JOSEPH PISANI AP Retail Writer NEW YORK (AP) — Toilet...

Mall owners close to buying JC Penney out of bankruptcy

By ANNE D'INNOCENZIO AP Retail WriterNEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a...

At Home launches collection with Fort Worth connection

At Home Group Inc. (NYSE: HOME), The Home Décor Superstore, has debuted an exclusive collection with interior...

Former Toys ‘R’ Us reopens as Havertys in Southlake

HAVERTYS (NYSE: HVT and HVT.A) will officially open its new store in Southlake Corners on Friday, August 21, 2020. The 32,300 square...
Robert Francis
Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

 

NEW YORK (AP) – J.C. Penney’s reinstalled CEO Mike Ullman is poised to get a big pay increase as the department store chain shows some signs of a turnaround.

J.C. Penney Co. could increase Ullman’s base salary to $1.5 million for this year, from $810,606 in the fiscal year that ended Feb. 1, according to a Securities and Exchange Commission filing Monday. He could also get $5.5 million in stock awards and is eligible to receive a $3 million bonus.

That potential $10 million payout is significantly higher than last year’s $2.4 million in compensation, according to a regulatory filing Friday. The 2013 total included $1.6 million in perks.

Ullman had been CEO for seven years until late 2011 – when he earned total compensation of $33.7 million. He returned to the helm in April 2013 when the company’s board ousted Ron Johnson, who had spearheaded a transformation strategy that involved eliminating most discounts and bringing in hip new brands. The goal was to bring in younger and more affluent shoppers, but the former Apple executive ended up alienating J.C. Penney’s loyal shoppers. Sales plunged and led to big losses, and Johnson was ousted after 17 months.

Since rejoining the department store chain, Ullman has restored frequent sales events and brought back basic merchandise. J.C. Penney earned $35 million for the quarter that ended on Feb. 1, compared with a loss of $552 million the year before.

The Plano, Texas-based company expects improvements in a key measure, revenue at stores open at least a year. In the holiday quarter, that rose 2 percent. Penney expects a gain of 3 to 5 percent in the current period.

But the company still has a lot of work to do to turn its business around. It lost $1.39 billion last year and revenue dropped nearly 9 percent to $11.86 billion as Johnson’s legacy continued to cast a shadow on its results.

Shares of Penney rose 11 cents to close at $8.60 Monday. Shares have been on an upswing since late February, but are still down 6 percent in 2014. The stock has lost 80 percent of its value since February 2012, when investor enthusiasm was high over Johnson’s transformation plan.

____  

- Advertisements -
- Advertisements -

Latest News

Trump says new TikTok headquarters could land in Texas, but questions about the deal remain

By Dan Rosenzweig-Ziff, The Texas Tribune Sept. 22, 2020 "Trump says new TikTok headquarters...

Powell and Mnuchin voice optimism but back more economic aid

By MARTIN CRUTSINGER AP Economics Writer WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin...

Wall Street steadies itself, halting 4-day losing streak

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA AP Business Writers Stocks on Wall Street shrugged off an...

Powell: Many small companies can borrow without Main Street

By CHRISTOPHER RUGABER AP Economics WriterWASHINGTON (AP) — Federal Reserve Chair Jerome Powell says that many mid-size U.S. businesses are now able...

Ascension Coffee, ZAAP Kitchen announce openings in Fort Worth

 An Australian-style coffee shop and cafe and a restaurant focusing on Thai Street food and Lao cuisine are coming to Fort Worth.