Boston, MA, 03/25/2014 (usastockreports) – No one is uninformed about the performance of J.C. Penney Co, Inc. (NYSE:JCP) in last few years. The company is facing a lot more issues concerned with the management, services and business structure. Besides all these the CEO of J.C. Penney is given good raise. Myron E. (Mike) Ullman, the CEO of JCP got a huge raise in the pay. As per the new base, Ullman will get $1.5 million as a base salary starting from year 2014 and the target incentive award will be as big as 200% of his base salary. There are other benefits attached apart from the base salary.
Reality or Myth
Well it is a huge boost in the salary package but again it has forced many people to think and analyze the performance of J.C. Penney Co, Inc. (NYSE:JCP). Is the company back on the track of progress path? Have the things have really changed in one year? Perhaps a little change in sales is not enough to say that the company has done well in last one year. It is more of like a dilemma where the investors are given an assumption that things are well and the company will certainly pull out from the tough times.
If the last year performance is seen then it seems as a lackluster performance with nothing changed at the base. The company has borrowed the cash to fulfill the company’s liquidity needs. A deal has been finalized with Martha Stewart Omnimedia, Inc. (NYSE:MSO). Along with it there are expectations that the sales will improve this year to reach in the mid single digits. However last year the sales were down in the double digits.
J.C. Penney Co, Inc. (NYSE:JCP) is already facing structural issues in its business. In the digital world where the businesses have the advantage of superior web designing and SEO services, the company’s website is continuously facing the issues. The weakest point of the company is customer’s dissatisfaction and it is not paid any attention by the management. In such a scenario the rise in pay of CEO is destined to attract arguments.