Seeking Alpha

Pay hike for J.C. Penney's CEO

  • J.C. Penney (JCP) CEO Mike Ullman will receive a boost in salary, according to a SEC filing from the retailer.
  • The exec will earn $1.5M in salary and be eligible for a $3M bonus and $5.5M in stock awards if things go right.
  • Most retail analysts think Ullman has done a capable job of attempting to right the JCP ship.
  • SEC Form 8-K
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Comments (15)
  • karen83054
    , contributor
    Comments (2) | Send Message
     
    How can they justify giving him an increase when store associates haven't had an increase in years!! I know he is turning the company around, but the associates weren't the ones that told the board to get rid of him in the first place. Can JCP get money back from Ron Johnson?
    25 Mar, 09:44 AM Reply Like
  • labas112
    , contributor
    Comments (335) | Send Message
     
    I agree. Why not give everyone a pay raise for mediocre results. JCP is done.
    25 Mar, 10:00 AM Reply Like
  • fuzzymc
    , contributor
    Comments (124) | Send Message
     
    If they paid Ron Johnson all those millions to ruin the company, they can at least pay ullman something to try and save it! Maybe they can sue Bill Ackman !!
    25 Mar, 09:55 AM Reply Like
  • shortsqueezer
    , contributor
    Comments (668) | Send Message
     
    look at the bigger picture. They need Ullman right now, otherwise they would have replaced him by now.

     

    If Ullman decides all of a sudden that he wants out after his most recent contract expired, JCP is screwed. What if Ullman decided he's rich enough and at an age where he doesn't need to prove anything and wants to be with his family. What would JCP do ? They'd be forced to grab the 1st decent CEO they could find...the street would and bears would pounce on this. If they obtain anew CEO, it's important it's seen as a choice they made, not a last ditch effort
    25 Mar, 10:12 AM Reply Like
  • bobmich52
    , contributor
    Comments (7) | Send Message
     
    Much agree Karen

     

    I Work In The Logistics Side Of JCP & Have Not Seen a raise in 3 yrs

     

    Management has cut our hours, But They still Get Paid In Full ounce a month
    25 Mar, 11:10 AM Reply Like
  • janeubauer
    , contributor
    Comments (3) | Send Message
     
    How about a raise for the hard working employees on the FRONT LINES at JCP everyday working their hearts out on the floor? Ullman should get a raise if, after two years, he has turned the retailer around.
    25 Mar, 11:50 AM Reply Like
  • wila
    , contributor
    Comments (10) | Send Message
     
    How about all of us that lost our jobs, we went through pay freezes, shortened hours , reduction in benefits . I was with the company for 30 years and was let go because my position was eliminated and then they turn around and bring that position back in less than a year after I was let go. They should let us come back!
    25 Mar, 04:36 PM Reply Like
  • bobmich52
    , contributor
    Comments (7) | Send Message
     
    They Did The Same Thing In The logistics center I work in
    26 Mar, 07:09 AM Reply Like
  • wila
    , contributor
    Comments (10) | Send Message
     
    How about the employees that were let go? We went through pay freezes, our hours were cut but our work load was increased, benefits were cut. I was let go after 30 years because my position was eliminated but yet it was brought back less than a year after I was let go! We should have be able to return to the same positions that were supposedly eliminated. If Mike was brought back bring us back!
    25 Mar, 04:49 PM Reply Like
  • Qniform
    , contributor
    Comments (2637) | Send Message
     
    Don't be surprised folks. The company is being run for the benefit of management - not shareholders, and certainly not for employees outside the C suite. I would not own company stock in the 401K if I had to work there. (Do they give you a 401K?)
    25 Mar, 05:03 PM Reply Like
  • Distressed Debt Analyst
    , contributor
    Comments (509) | Send Message
     
    The way I read this, he already got the "bonus." It looks like the stock just had to rise 50% from the grant date, which I believe was the start of the fiscal year, and stay above that price for 20 days. If that's right, then he already "earned" the bonus even before this 8-K was filed.

     

    Which is pretty disturbing. The numbers he gave in November as guidance, and then the failure to produce numbers in January or early February are a big part of the reason the stock price was what it was when the fiscal year ended. Then weeks later (after the fiscal year begins and the stock grant is made) they announce that spending was $250mn less than forecast just a few months before (?!?) and the stock almost doubles.

     

    Hmmm...

     

    I can't see any justification whatsoever for Ullman getting the amount he's set to get. He didn't restore the company to profitability. He hasn't gotten it past its liquidity problems. The company didn't have to hunt to find him or lure him away from another job.

     

    So what's the justification for a $7mn pay package?

     

    The more I follow this company, the more I see in management behavior that I don't like.
    26 Mar, 06:40 AM Reply Like
  • SA_Member_11523241
    , contributor
    Comments (83) | Send Message
     
    DDA, where do you see an increase of 50% for 20 continuous days? Taking the 2/03/14 closing price of $5.97 and adding 50% ($2.99) the target is $8.96. If the 1/31/14 closing price of $5.68 is used plus 50% ($2.84) the target is $8.52. I only see five continuous days at or above $8.52 and none at or above $8.96 within the FY2014 time frame. http://bit.ly/NThICV Solid Q1 results could change the stock trajectory quickly.
    26 Mar, 08:48 AM Reply Like
  • Patook
    , contributor
    Comments (6) | Send Message
     
    This kind of reporting is misleading at best.

     

    The fact is that Ron Johnson was paid $53Million his first year as CEO.

     

    Ullman came back to right the ship and took a huge pay cut in doing so. Not just off of what Ron Johnson made, but a pay cut off of what Ullman made previously as CEO. If he is completely successful and meets every one of his goals, he will in fact make more money. However this will still be less then he made as CEO prior to the Ron Johnson era.

     

    Reporting this as a boost in salary is technically true, but misleading.

     

    Ullman came back at 66 to save the troubled JCP. If he is successful, he is worth every penny.
    26 Mar, 07:20 AM Reply Like
  • kevwms
    , contributor
    Comments (2) | Send Message
     
    Without a capable CEO, the company is bankrupt and everyone loses their job. For the multi-billion-dollar business that is JCP, Ullman is worth twice what he is getting.
    26 Mar, 11:16 PM Reply Like
  • kevwms
    , contributor
    Comments (2) | Send Message
     
    Without a capable CEO, the company is bankrupt and everyone loses their job. Ullman is worth double what he is getting.
    26 Mar, 11:17 PM Reply Like
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