Ran across an article in Fortune that alluded to the following regarding Ron Johnson, his departure from $AAPL and what may be awaiting him at $JCP…
In his latest Monday Note column, posted Sunday afternoon, Gassée suggests that Johnson was chaffing under Jobs’ oversight and unrelenting search for ways to improve everything — including the Apple Stores — and must have finally felt, in Gassée’s words, “disenfranchised.”
Gassée also hints that although Johnson has been promised the CEO title at J.C Penney, he will be working for another strong-willed boss in Mike Ullman and might find himself disenfranchised once again. Having himself been tapped to lead Apple before being forced out, like Steve Jobs, by John Sculley, Gassée knows what that feels like.
To read Gassée’s take on the Apple Store’s “non-celebration,” click here.
Read the whole Fortune article here:
Really? Slow news night so we might try to invent some?
Let’s look at what is actually happening:
On Junbe 14th, $JCP put out a press relase saying:
J. C. PENNEY COMPANY NAMES RON JOHNSON AS ITS NEXT CHIEF EXECUTIVE OFFICER, EFFECTIVE NOVEMBER 1
MYRON E. (MIKE) ULLMAN, III TO BECOME EXECUTIVE CHAIRMAN OF THE BOARD
Johnson Has Led Apple Inc.’s Retail Since Its Inception
Will Join J. C. Penney’s Board of Directors on August 1
Plano, Texas (June 14, 2011) – Myron E. (Mike) Ullman, III, chairman and chief executive officer of J. C. Penney Company, Inc. (NYSE: JCP), today announced that Ron Johnson, an innovative and highly regarded retail executive, has been named the Company’s next chief executive officer, succeeding Mr. Ullman in that role. Mr. Johnson will assume the CEO position on Nov. 1, 2011, and report to Mr. Ullman, who will become executive chairman. Mr. Johnson will also join the Company’s Board of Directors, effective Aug. 1, 2011.
Mr. Johnson, 52, has served for the past 11 years as senior vice president of retail at Apple Inc., where he led its retail strategy, which from its start in 2001 now numbers over 300 stores in the U.S. and abroad. He joined Apple after 15 years at Target Corporation, where he was a key merchandising executive.
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.”
Thomas J. Engibous, lead director of J. C. Penney Company’s Board, said, “The Company has made outstanding strides under Mike Ullman’s leadership and it has great potential ahead thanks to the Long Range Plan for growth he and the management team developed and are executing, which includes top management succession planning. The progress made under Mike’s leadership is reflected in the Company’s ability to attract an executive of Ron Johnson’s talent and track record as it continues to focus on achieving its objective of becoming America’s most exciting place to shop. We look forward to Ron joining our Board and then to his assuming the chief executive role as he, Mike and their team work towards achieving the Company’s goals.”
Mr. Johnson said, “I’ve always dreamed of leading a major retail company as CEO, and I am thrilled to have the opportunity to help J. C. Penney re-imagine what I believe to be the single greatest opportunity in American retailing today, the Department Store. I have tremendous confidence in J. C. Penney’s future and look forward to working with Mike Ullman, the Executive Board and the Company’s 150,000 associates to transform the way America shops.”
As a demonstration of his confidence in J. C. Penney’s long-term potential, Mr. Johnson requested and has committed to make a personal investment of
$50 million in the Company through the purchase, at fair market value, of 7½-year warrants on 7.257 million shares of J. C. Penney Company stock. The warrants cannot be sold or hedged for the first six years of their term and have a strike price of $29.92, the closing price of the stock on the business day prior to Mr. Johnson’s commitment to purchase the warrants.
On June 20th, $JCP went a step further saying:
J. C. PENNEY COMPANY PROVIDES FURTHER DETAIL FOR TIMELINE OF
LEADERSHIP SUCCESSION
Full Transition to Ron Johnson’s Leadership to Occur on Feb. 1, 2012,
When Mike Ullman Will Step Down from the Company
Plano, Texas (June 20, 2011) – The Board of Directors of J. C. Penney Company, Inc. (NYSE: JCP) today provided further detail regarding the leadership succession plans it announced last week, under which Ron Johnson will become the Company’s chief executive officer, succeeding Myron E. (Mike) Ullman, III.
Upon joining the Company as CEO on Nov. 1, 2011, Mr. Johnson will report to the Board of Directors, of which he will become a member on Aug. 1, 2011, and to Mr. Ullman as executive chair of the board. Mr. Johnson will have immediate responsibility for the Company’s core merchandising and marketing functions and will have full responsibility for all other business areas by the end of a three-month transition period. The Board said that Mr. Ullman will remain in the position of executive chairman until Feb. 1, 2012, the beginning of the Company’s 2012 fiscal year, at which time he will step down from the Company and its Board of Directors.
Thomas J. Engibous, lead director of J. C. Penney Company’s Board, said, “We are delighted that Ron is joining the Company. Ron and Mike both believe it would help the transition to have a short period during which they will work together to lead the Company. We greatly appreciate that Mike, who has been an outstanding leader at J. C. Penney, has agreed to remain as Executive Chairman through the end of this fiscal year to ensure a smooth transition of responsibilities.”
Mr. Johnson said, “I look forward to becoming the CEO of J. C. Penney and working side by side with Mike during the first three months of my tenure. I am excited to work with Mike, the Board and the entire J. C. Penney team as we lay the foundation to transform the way America shops. I cannot wait to get started.”
Mr. Ullman said, “I look forward to working with Ron and assisting him in making a rapid and successful transition, and then to step aside, as has been my practice in previous CEO positions. Leadership succession planning was a key priority of mine and of our Board of Directors, and I am delighted we have accomplished it in such a positive way for J. C. Penney.
My take is that while the author may know a thing or two about the workings of $AAPL, he knows VERY little (I’m being nice) about those at $JCP. Mike Ullman is out at $JCP. “Make no mistake” and “let me be clear” at President Obama is fond of saying……he is gone. See, technically, Ullman works for another strong willed guy who goes by the name of Bill Ackman (he and Vornado $VNO have an interest in ~30% of $JCP stock and now have seats on the Board). Ullman is “voluntarily” stepping down and playing nice in return for another year (he officially leaves at the end of the current fiscal year) of bonuses, options, grants, saving face… etc. Ullman gets to walk away looking like a good guy and $JCP gets a very accomplished CEO….win/win.
This is not a scenario is which Ullman is bringing in Johnson and grooming him for an eventual CEO position, this is a scenario where Ackman is bringing in Johnson to replace Ullman. Do not let anyone tell you any different. Because the article appears in Fortune it might get some legs and people may begin to question whether or not Johnson will actually ever become $JCP CEO. Ignore them all……he will