Posted: 6:07 a.m. Friday, May 3, 2013
By Joe Kelley
From Bloomberg News:
Ron Johnson’s tenure at J.C. Penney Co. will long be associated with a 25 percent sales plunge. Lost amid the criticism since his departure last month is the $170 million it cost to install Johnson and his top three executives.
The sum covers cash payments and restricted stock offerings to the four executives and outgoing Chief Executive Officer Myron Ullman -- and doesn’t include salary or incentive pay, according to public filings. Now after less than a year and a half, Johnson and his trio are gone, and some are being been paid on the way out too. Upon his April 17 exit, Chief Operating Officer Michael Kramer pocketed $2.1 million.
“This is a story of how just tossing money at management doesn’t guarantee success,” Steven Hall, managing director and founder of his eponymous executive-compensation consulting firm, said in an interview.