Former Apple executive Ron Johnson came to department store chain J.C. Penney in 2011 with great fanfare and a pledge to reverse the retailer’s fortunes with an ambitious turnaround. But less than two years later the executive is out.
Johnson’s departure marks an abrupt, albeit not particularly surprising, end to his unsuccessful bid to transform the shopping experience and lure shoppers with everyday low prices rather than the sales for which the chain has long been known… Johnson’s tactics proved to alienate the existing customer base without drawing in new shoppers quickly enough to replace them.
After receiving a rich $53.3 million in compensation for 2011 — a chunk of which was clearly to lure him from Apple — his pay package for 2012 was just $1.9 million… after the company booked a $1 billion loss for the year.
Wow. It’s a big deal to build a $1 billion company. So I guess by extrapolation it would have to be pretty big deal to lose $1 billion, too, huh? – Indy