And the fact that this is so exceptional as to be newsworthy is exactly what is wrong with corporate governance in the US.  This should be happening at hundreds of other companies every year.

TheOtherGuy: And the fact that this is so exceptional as to be newsworthy is exactly what is wrong with corporate governance in the US.  This should be happening at hundreds of other companies every year.

THIS.

But i was assured that ALL CEOs were a genius and deserve to be given outrageous compensation.

I want my money back!

In a clear sign of its dissatisfaction with the direction of the company, the board of J. C. Penney gave its chief executive, Ron Johnson

Oh, Ron Johnson...

Gig103: NuttierThanEver: I don't know what to make of this

Accept that it's good and more companies should do it. But don't feel bad for the guy, he is still making $1,900,000 this year.

I'm not sure he can live on that salary.

$1.9 million is a "message sent?!"

I wish my company would send me a similar message! "We're not satisfied with your teaching.... Here's $1.9 million.... Do better next year and you can return to you 5 figure salary!"

Having said that? Good job JCP.... I hope you become a role model for the way other failing companies treat their CEOs.

A pay cut of 97%.  So, he used to make $63.3mil, in a tanking company.

*blink blink*

The problem with Penny's is the problem with America.  Penny's used to be the solidly middle-to-lower-middle class department store.  Macy's was slightly higher end with Lord & Taylor being the stuffy high end.  Sears was the hardware and lower-end clothing.

But, post-recession, the middle class is hollowing out.  Worse than ever.  And, part of it is due to things like one guy making $63.3mil, with the workers getting almost no raises, while everything gets more expensive.

The story also notes Kohl's, which was the box store version of Penny's aimed at the same price.

Part of the problem is that there are stores like Target that are brighter and not attached to malls going after the same dollar.  The middle class likes bright, open, clean, shiny right now.  Target is completely that, which is why they're succeeding more than Penny's.  Middle-to-lower-middle class people don't have as much capital to go browsing at malls, so why bother when they have all-in-one box stores like Target?

Penny's needs to re-do its image.  They may not be able to go up, or down...but its not in marketing.  I have a solution, but I'm not going to offer it for free.  All you have to do is be a trendspotter.  Somebody hire me!  I'll work for $700,000/year, and I'll turn your doomed company around.

misanthropicsob: Part of the problem is that there are stores like Target that are brighter and not attached to malls going after the same dollar.  The middle class likes bright, open, clean, shiny right now.  Target is completely that, which is why they're succeeding more than Penny's.  Middle-to-lower-middle class people don't have as much capital to go browsing at malls, so why bother when they have all-in-one box stores like Target?

Target doesn't carry squat for men's clothing.  Penney's does - in my size even!

/how come the mall by me is always packed?

I had to return some christmas presents to JC Penny and they gave me a gift card for store credit. I can't find that gift card now. I'm sure it's somewhere around the house, but I just know that I'll find it after JC Penny goes out of business.

fortheloveofgod: misanthropicsob: Part of the problem is that there are stores like Target that are brighter and not attached to malls going after the same dollar.  The middle class likes bright, open, clean, shiny right now.  Target is completely that, which is why they're succeeding more than Penny's.  Middle-to-lower-middle class people don't have as much capital to go browsing at malls, so why bother when they have all-in-one box stores like Target?

Target doesn't carry squat for men's clothing.  Penney's does - in my size even!

/how come the mall by me is always packed?

I dunno...the mall by me is a lot emptier than it used to be except at holiday season.

The Evil Home Brewer: $1.9 million is a "message sent?!"

I wish my company would send me a similar message! "We're not satisfied with your teaching.... Here's $1.9 million.... Do better next year and you can return to you 5 figure salary!"

Having said that? Good job JCP.... I hope you become a role model for the way other failing companies treat their CEOs.

Take away his corporate jet and then were talking.

3 1/2 days in the office in Plano evidently is not enough to turn around JCP.

He's still overpaid by 1.87 million dollars.

misanthropicsob: Part of the problem is that there are stores like Target that are brighter and not attached to malls going after the same dollar.

I will stop at Target whenever because I can also pick up some groceries there. Other than that, why would I shop at Penney's when I can get something just as good at Marshall's or Ross?

Gig103: buckets_of_fun: I'm not sure he can live on that salary.

Yeah, he might have to sell the Bentley and get a 7-series instead. Poor guy.

Is there an address where we can send can goods for his family in their time of need?

Gig103: buckets_of_fun: I'm not sure he can live on that salary.

Yeah, he might have to sell the Bentley and get a 7-series instead. Poor guy.

Actually, he drives a Maserati.

/Shallow Alto

Not all JC Penney stores are in a mall, the one nearest me is free standing and located next to a Target, Marshalls and a Kohls. I used to shop there when it first opened and now I can't even go in there without walking through a wall of construction noise and debris.  I also fail to understand how they continue to remodel the JC Penney closest to me, and the company is bleeding money.

Note to JCP.....Stop retooling the inside of the store, creating mini-boutiques, etc. Bring back the Sales and the Coupons and you might perhaps regain some of your business.

misanthropicsob: the mall by me is a lot emptier than it used to be

The accepted term is, "Transitional Neighborhood".

A 97% cut, and he still gets more than 99.9 of us will see in our lifetimes! No one is worth more than $100,000 per year.

macdaddy357: A 97% cut, and he still gets more than 99.9 of us will see in our lifetimes! No one is worth more than $100,000 per year.

I was just coming in to say similar: at my current income it would take me 47 years to make his salary. Yes, I have a college degree, and yes, I'm looking for a new job.

...the board of J. C. Penney gave its chief executive, Ron Johnson, a pay cut of almost 97 percent, to $1.9 million

macdaddy357: A 97% cut, and he still gets more than 99.9 of us will see in our lifetimes! No one is worth more than $100,000 per year.

Are you serious with that last line? 100k salaries are not uncommon for midlevel here in Chicago. $100k is not a lot of $

misanthropicsob: A pay cut of 97%.  So, he used to make $63.3mil, in a tanking company.

*blink blink*

The problem with Penny's is the problem with America.  Penny's used to be the solidly middle-to-lower-middle class department store.  Macy's was slightly higher end with Lord & Taylor being the stuffy high end.  Sears was the hardware and lower-end clothing.

But, post-recession, the middle class is hollowing out.  Worse than ever.  And, part of it is due to things like one guy making $63.3mil, with the workers getting almost no raises, while everything gets more expensive.

The story also notes Kohl's, which was the box store version of Penny's aimed at the same price.

Part of the problem is that there are stores like Target that are brighter and not attached to malls going after the same dollar.   The middle class likes bright, open, clean, shiny right now.  Target is completely that, which is why they're succeeding more than Penny's.  Middle-to-lower-middle class people don't have as much capital to go browsing at malls, so why bother when they have all-in-one box stores like Target?

Penny's needs to re-do its image.  They may not be able to go up, or down...but its not in marketing.  I have a solution, but I'm not going to offer it for free.  All you have to do is be a trendspotter.  Somebody hire me!  I'll work for $700,000/year, and I'll turn your doomed company around.

You haven't been following the JCP story for the last year, have you?
They have re-done their image. They are bright, open, clean. There are no more piles of 75% off racks.
The problem is they are trying to change customer bases. They've succeeded in turning off the "buying on sale for the sake of getting a deal" base but have yet to capture the "need a good price all the time" crowd. People somehow expected this to happen quickly, and I don't think it's a change that can be made in a few quarters.

misanthropicsob: A pay cut of 97%.  So, he used to make $63.3mil, in a tanking company.

*blink blink*

The problem with Penny's is the problem with America.  Penny's used to be the solidly middle-to-lower-middle class department store.  Macy's was slightly higher end with Lord & Taylor being the stuffy high end.  Sears was the hardware and lower-end clothing.

But, post-recession, the middle class is hollowing out.  Worse than ever.  And, part of it is due to things like one guy making $63.3mil, with the workers getting almost no raises, while everything gets more expensive.

The story also notes Kohl's, which was the box store version of Penny's aimed at the same price.

Part of the problem is that there are stores like Target that are brighter and not attached to malls going after the same dollar.  The middle class likes bright, open, clean, shiny right now.  Target is completely that, which is why they're succeeding more than Penny's.  Middle-to-lower-middle class people don't have as much capital to go browsing at malls, so why bother when they have all-in-one box stores like Target?

Penny's needs to re-do its image.  They may not be able to go up, or down...but its not in marketing.  I have a solution, but I'm not going to offer it for free.  All you have to do is be a trendspotter.  Somebody hire me!  I'll work for $700,000/year, and I'll turn your doomed company around.

THIS!

I'll do the same thing though, for only $650,000/year!  ;)

So many whiny class warriors in this thread. Tell you what, go start a company and you can pay the CEO as little as you want.

Whatever JC Penney or kohls is paying their CEO, it's none of your farking business or concern unless you own shares in the company. And if you do and are pissed about the CEO salary, just sell the shares and invest somewhere else. You guys all seem to like government spending. Invest your money in munis or treasuries and help finance the deficits you aren't concerned about.

The problem with JCPenney is wasn't really the whole re-imaging thing, but they pretty much alienated the majority of shoppers that they had before the switchover (middle-class, and middle-aged to older women for the most-part). Just read their Facebook page and other comments around the web...I'm really surprised the whole company hasn't gone bankrupt yet. They ditched familiar clothing lines and replaced it with lower-end goods aimed at a younger market who aren't attracted at all to "JCP" or whatever they want to call themselves now to try and sound hip. Not only that, but the selection of clothing now is horrible. Go into any of their stores and it's like you walked into the last week of a "going out of business" sale.

If they kept the same exact clothing and actually lowered the price (and maybe still throw out a coupon here and there), and maybe cut back slightly on things that weren't selling, this wouldn't be an issue, but they changed too much, too fast. And now the whole ditching the checkouts for a random employee walking around with a credit card swipe on an iPad is even more ridiculous.

So whatever customers JCP did have, now joined everyone else over at Kohl's, and the younger crowd continues to get their duds at Forever 21, H&M, thrift stores, Target, etc.

/This sounds like I'm an old person but I'm only in my early 20's
/Stopped going to "JCP" when they stopped carrying St. John's Bay relaxed fit work pants. Bought a pair of the JCP brand ones and I feel like a farking hipster in the way these feel. Awful quality too
/Threw them out and got a $10 pair of normal black work pants at Walmart

macdaddy357: A 97% cut, and he still gets more than 99.9 of us will see in our lifetimes! No one is worth more than $100,000 per year.

You sound poor.  A 100k is barely middle-class in Southern California.

Debeo Summa Credo: So many whiny class warriors in this thread.

And one servile corporate drone who can always be counted on to defend those they see as their natural betters.

macdaddy357: A 97% cut, and he still gets more than 99.9 of us will see in our lifetimes! No one is worth more than $100,000 per year.

This is what fark liberals actually believe.

misanthropicsob: A pay cut of 97%.  So, he used to make $63.3mil, in a tanking company.

To be fair, he was hired to turn the company around (it was in trouble before he was hired) and that was his first year's salary.  Of course, everything he did made the problem worse, not better, hence the pay cut.

Otto_E_Rodika: macdaddy357: A 97% cut, and he still gets more than 99.9 of us will see in our lifetimes! No one is worth more than $100,000 per year.

You sound poor.  A 100k is barely middle-class in Southern California.

In LA proper, yes.  But I live in Riverside and $100k would be a lot.  I do fine at $40k a year.  Of course a house the same size as the one I bought in Riverside for $150k in 2009 would be worth $3 million in Westside Los Angeles or Irvine.

I'll take the job for half what he's making. No way I could do worse. Hear me, JCP? EIP. Hit me up.