Home > JC Penney President Mike Francis Came, Saw, Collected $10 Million, And Quit Nine Months Later
JC Penney President Mike Francis Came,Saw, Collected $10 Million, And Quit NineMonths Later
06/18/2012 - 16:54
Submitted by Tyler Durden
on 06/18/2012 16:54 -0400After Hours
If anyone is wondering why the darling stock of Bill Ackman and Whitney Tilson, for whom everycollapse of JCP is a buying gift from god, namely JCPenney, is plunging after hours, it is becausethe company's president, Michael Francis, hired October 4, 2011, has just quit. To wit
: "J. C.Penney Company, Inc. ("jcpenney") (JCP) today announced that Michael Francis will be leavingthe Company, effective today. Chief Executive Officer Ron Johnson will assume directresponsibility and oversight of the company's marketing and merchandising functions." And tothink that just 9 months ago the company CEO Ron Johnson announced, that "I am thrilled towelcome Michael to our team
He is an extremely talented executive with the vision andcourage to re-imagine the department store experience.
His ability to innovate and deepunderstanding of the industry will be invaluable as we set out to transform J.C. Penneyinto America's favorite store
." And while his ability to do anything else appears to have been adud, his ability to read the fine print in his contract, especially where it talks about his perks, wassecond to none. Because despite leaving just 9 months after his hiring,
Francis is entitled tocollect a whopping $9 million in pro-rated signing bonus (alongside $100,000/month insalary): all in all - a tidy package of $10 million for shooting the breeze while observing asinking retail ship
. Not bad for a company whose stock has just plunged to September 2010levels.From the firm's proxy statement
Michael R. Francis. Mr. Francis’s offer letter, dated October 3, 2011, provided for the following: Base salary of $1,200,000 Participation in our Management Incentive Compensation Program, with a target bonus equal to 100% of base salary, with a maximum bonus equal to 200% of base salary (prorated for 2011)
C Penney President Mike Francis Came, Saw, Collected $10 Million, A...http://www.zerohedge.com/print/4495361 de 419/06/2012 08:49 a.m.