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Following up on 1% Success Stories: Man Makes $10 Million For 9 Months Work.

From the Dallas Business Journal:

J.C. Penney Co. Inc. laid off more than 350 corporate employees Tuesday at its Plano headquarters, bringing the number of employees laid off at the Plano office to more than 900 since April.

"We have simplified processes, removed unnecessary work and reduced layers to help us make better and faster decisions. While difficult, these decisions are in the long-term interests of jcp and our stakeholders." CEO Ron Johnson said in a statement.

I imagine the severances for those 600 plus employees - most of whom surely worked more than 9 months - will not be anywhere close to $10 million. But clearly paying that flash-in-the-pan President $10 million paid off for JC Penney somehow, hey maybe he'll shop there (probably not).

Don't punish success.

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Comment Preferences

  •  Suppose that computers or Indians (1+ / 0-)
    Recommended by:
    Horace Boothroyd III

    or maybe Indians using computers, could do their jobs more cheaply.

    I wasn't aware the JCP was a smashing success, however (so I guess I learned something from this diary!).

  •  The shareholders will know if he is worth it (1+ / 0-)
    Recommended by:
    VClib

    when they see what future profits turn out to be.

    If he turns JCP around so that it's making a profit instead of losing $163 million in one quarter, then yes, to the people paying his salary, the owners of the company (the shareholders), he's worth that much money.

    They hired him because he was pretty successful at Apple.  He's probably making less at JCP than he made at Apple.  But again, he's only worth it to the owners of JCP -- the people paying him -- if he can make that company profitable, which is no small feat.  

  •  I'm a little confused here (6+ / 0-)

    The 1% success story you refer to is that the Chief Marketing Officer was fired after 9 months by the new CEO Ron Johnson.  It was not the CEO that got fired. JC Penny's new pricing and marketing strategy has not been playing well with customers.

    It was indeed an obscene payoff, and given that Ron Johnson has been plugging the new pricing and marketing himself, I don't know that we won't just be seeing another huge payout to him next February when the 2012 christmas season is a bust.

    Any jackass can do layoffs and cut losses - see Herman Cain. But, we'll see if Ron Johnson's strategy ultimately pays off. I doubt it, but given the incestuous relationship between him and the board members, he's already got a huge severance package of his own when he fails.

    Sad to see so many taken down with them.

    Liberalism is trust of the people tempered by prudence. Conservatism is distrust of the people tempered by fear. ~William E. Gladstone, 1866

    by absdoggy on Tue Jul 10, 2012 at 12:36:20 PM PDT

  •  So, CEO Ron Johnson might be a mixed bag (3+ / 0-)

    We certainly have applauded his inclusiveness in ads and spoke people. Personally, I like the local store better.  It is cleaner and better stocked in the last 6 months.

    We also don't know what level employees are being reduced.  I do know that my local JCP has more people around ... I don't have to wait forever to find someone to check me out.

    So, I will watch carefully for more information.  This is neither a kill 'em dead advocacy or a free pass. Thanks for this heads up.

    "Life without liberty is like a body without spirit. Liberty without thought is like a disturbed spirit." Kahlil Gibran, 'The Vision'

    by CorinaR on Tue Jul 10, 2012 at 12:36:46 PM PDT

    •  These are layoffs in corporate. (0+ / 0-)

      Such layoffs are not seen at the store level.  

      "Politics should be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage." -- Lucille Ball

      by Yamaneko2 on Tue Jul 10, 2012 at 06:15:09 PM PDT

      [ Parent ]

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