JCPenney Poaches Ron Johnson From Apple As New CEO

Posted Jun 14, 2011

J.C. Penney Company, Inc. (NYSE:JCP) is believed to be poaching Ron Johnson from Apple Inc. (NASDAQ:AAPL) to be their new CEO. Johnson worked on Apple’s retail stores. Johnson would succeed current CEO Myron “Mike” Ullman at J.C. Penney.

J.C. Penney has 1,100 department stores and competes with Macy’s and Kohl’s. J.C. Penney’s total sales from last year hit about $17.8 billion. J.C. Penney said that Johnson would be given $50 million in soon-to-vest equity awards that Johnson would be leaving behind from Apple. Johnson would then pay $6.89 per share for warrants to buy 7.26 million shares of J.C. Penney stock.

Johnson would also be paid an annual salary of $1.5 million and would be given an annual bonus. Johnson joined Apple in 2000 and oversaw the opening of 300 stores. Johnson had previously worked at Target as the VP of merchandising for stores.

[WSJ]