J.C. Penney Ex-CEO Ron Johnson Didn’t Get Severance When He Left

Ron Johnson, the former J.C. Penney (JCP) Co. chief executive officer who was ousted last year after a controversial attempt to modernize the retail chain, didn’t receive severance when he left the company.

Johnson and Chief Talent Officer Daniel Walker, who also resigned in April 2013, both didn’t receive severance payments, according to a company filing yesterday. Michael Kramer, the former chief operating officer, did get a payout, though the company reduced his termination agreement by $1 million. He was paid a total of $2.35 million last year.

The lack of severance serves as an endnote to Johnson’s tumultuous career at J.C. Penney. After arriving at the department-store chain from Apple Inc. in late 2011 with great fanfare, he oversaw a 25 percent plunge in sales. Johnson’s predecessor as CEO, Mike Ullman, retook the reins last year and undid many of the changes.

Ullman earned $2.39 million in total compensation last year, including more than $810,000 in salary, the Plano, Texas-based company said yesterday in the same filing. Johnson received $658,921 in salary and other compensation for the portion of the year he worked.

Ullman’s compensation also included more than $913,000 for personal use of corporate aircraft. Johnson earned more than $344,000 on aircraft use in 2012 and almost $409,000 in the less than four months he spent at the company last year.

Photographer: Jin Lee/Bloomberg

Ron Johnson, then chief executive officer of J.C. Penney Co., arrives at State Supreme court in New York, on March 1, 2013. Close

Ron Johnson, then chief executive officer of J.C. Penney Co., arrives at State Supreme... Read More

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Photographer: Jin Lee/Bloomberg

Ron Johnson, then chief executive officer of J.C. Penney Co., arrives at State Supreme court in New York, on March 1, 2013.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editors responsible for this story: Robin Ajello at rajello@bloomberg.net Nick Turner, James Callan

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