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J.C. Penney CEO’s pay package plummeted 97% in 2012

New York -- A Securities and Exchange Commission filing on Tuesday revealed that embattled J.C. Penney CEO Ron Johnson saw his compensation package plummet 97% to about $1.9 million in 2012.

Johnson received a base salary of $1.5 million, up from his partial-year salary of $375,000 in 2011, but did not receive stock or option awards in 2012. That compares with a stock award worth $52.7 million on the date it was granted in 2011, when Johnson was named CEO.

He also received $388,587 in other compensation in 2012, including contributions to savings plan and personal use of company aircraft, home security systems and information technology services.

According to J.C. Penney, no executives were given any performance-based bonuses in 2012, as the company reported an operating loss for the fiscal year of about $1 billion. J.C. Penney added in the filing that fiscal 2012 was the first year of a "multi-year transformation strategy" for the company, as it “underwent tremendous change as we began shifting our business model from a promotional department store to a specialty department store. Fiscal 2012 was tougher than expected and the company's sales and operating profit declined significantly."

 

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