J. C. Penney (JCP) Hires Ex-Apple Retail Executive Ron Johnson for Top Job, Shares Surge
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Investors are applauding a move by J. C. Penney Company (NYSE: JCP) to hire former Apple (Nasdaq: AAPL) retail guru Ron Johnson as the company's new CEO. Adding fuel to fire was a $50 million personal investment in the company from Johnson.
Johnson, who served for the past 11 years as senior vice president of retail at Apple, will be taking over the JCP CEO role from Mike Ullman on November 1, 2011. Ullman will become executive chairman. Johnson will also join JCP's Board of Directors, effective August 1, 2011.
Before Apple, Johnson spent 15 years at Target (NYSE: TGT) as a key merchandising executive.
Commenting on the hire, Mr. Ullman said, "I am delighted that Ron is joining our Board and the Company, and look forward to working with him as we continue to transform the jcpenney brand. He is widely recognized and highly regarded in the retail industry for his creativity and innovation, his commitment to empowering employees to deliver an unparalleled customer experience, and to making stores exciting places where people love to shop. His tremendous accomplishments at Apple and Target speak to his great consumer merchandising, marketing and operational talent."
Citing his confidence in the long-term potential of J.C. Penney, Johnson committed to make a personal investment of $50 million in the company through the purchase, at fair market value, of 7 1/2-year warrants on 7.257 million shares of J. C. Penney Company stock. The warrants cannot be sold or hedged for six years and have a strike price of $29.92.
Shares of J.C. Penney are up 16 percent to $34.94 on the Johnson news.
Johnson, who served for the past 11 years as senior vice president of retail at Apple, will be taking over the JCP CEO role from Mike Ullman on November 1, 2011. Ullman will become executive chairman. Johnson will also join JCP's Board of Directors, effective August 1, 2011.
Before Apple, Johnson spent 15 years at Target (NYSE: TGT) as a key merchandising executive.
Commenting on the hire, Mr. Ullman said, "I am delighted that Ron is joining our Board and the Company, and look forward to working with him as we continue to transform the jcpenney brand. He is widely recognized and highly regarded in the retail industry for his creativity and innovation, his commitment to empowering employees to deliver an unparalleled customer experience, and to making stores exciting places where people love to shop. His tremendous accomplishments at Apple and Target speak to his great consumer merchandising, marketing and operational talent."
Citing his confidence in the long-term potential of J.C. Penney, Johnson committed to make a personal investment of $50 million in the company through the purchase, at fair market value, of 7 1/2-year warrants on 7.257 million shares of J. C. Penney Company stock. The warrants cannot be sold or hedged for six years and have a strike price of $29.92.
Shares of J.C. Penney are up 16 percent to $34.94 on the Johnson news.
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