JCPenney‘s (NYSE:JCP) foundering turnaround is hitting the wallet of its CEO Ron Johnson.
The former Apple (NASDAQ:AAPL) executive, who was hired to reverse the struggling retailer’s fortunes, was given $53.3 million in compensation in 2011. Last year, he received just a salary of just $1.5 million and $344,000 in air travel benefits, Reuters noted.
However, $52.7 million of Johnson’s 2011 compensation was in the form of stock awards, which were meant to offset compensation he would have received from Apple had he remained at the iPhone-maker.
Still, Johnson was not granted any new stock awards last year. Or a bonus. That’s because, under Johnson’s leadership, the chain has suffered staggering losses. In fact, no cash bonuses were awarded to any of the firm’s current top executives.
A plan to substitute “everyday low prices” for frequent sales bombed with shoppers, leading JCPenney to post a 25% decline in sales for 2012. The chain has hastily moved back to promoting sales again.
The poor results have prompted speculation that JCPenney’s board might soon show Johnson the door. In the event that he is ousted as CEO, Johnson is eligible for a severance package worth $148,924.
Last month, the chain announced that it would lay off another 2,200 workers.
Shares of JCPenney rose fractionally in Wednesday morning trading.