- The Washington Times - Wednesday, April 3, 2013

Talk about a pay cut. J. C. Penney’s chief executive officer, Ron Johnson, saw his 2012 salary cut by nearly 97 percent, to $1.9 million.

Meanwhile, not one executive received a bonus, The Daily Beast reported.

Business analysts say Mr. Johnson, who took the helm at the flailing company in 2011, is on his way out. He likely only has one or two quarters to bolster the company’s revenues.

“The CEO is certainly being given a message,” said Kent Hughes, a managing director for an advisory firm, as quoted by The New York Times.

Mr. Johnson had been given a total compensation package — salary plus stock — valued at $53.3 million in 2011, The Times said. Since, he’s overseen a multitude of company problems, most of which he’s addressed in a way that’s angered board members.

He went back-and-forth on discount sales policies — confusing customers, The Times reported. He went back-and-forth on company advertisements and whether to include prices, and by fiscal 2012, J.C. Penney saw its sales drop by $4 billion.

The company’s stock currently starts around $14.55 — about half of what it was valued when Mr. Johnson took charge, The Times said.



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