It went unnoticed by many, but if there was ever a contestant for a poster child to demonstrate what’s wrong at all levels across the spectrum of business there’s not one better in my opinion than what took place at J.C. Penny® recently.
Have you been into a J.C.Penny recently? The one where I live and formerly shopped has transformed from a peer competitor with the likes of Macy’s® to now looking and feeling like I’m shopping in a dollar store. What a train wreck I said to myself as I walked the isles and whomever is responsible for this should be fired. Well it seems they heard me, but not to clearly if what I read in the news is correct.
The CEO is blaming his #2 for poor execution. Fine, so they let him go but… (and it’s a very big but) not without him collecting nearly his full $12 MILLION sign on bonus. (Reports are it was pro rated to approximately $8 million or so, but hey, what’s a few million between friends right?) So I have to ask. What shows more stupidity? A: Hiring someone whom was so incompetent yet smart enough to protect themselves so that it cost you millions in salary to get rid of them? B: Poor execution of vision throughout the organization incurring damage of countless millions of dollars in your customers perceptions of your now tarnished brand? C: The CEO whom showed incompetence in hiring this person to begin with? D: The board of directors whom signed off on all this originally? Or… E: All of the above? I think you know my answer. What foolishness is all I can say. All this and it took less than a year. 8 months by what I’ve read.
I wonder how it felt knowing you were locked in to gain millions no matter what happened as compared to the actual investors or customers. Below is a stock chart for the time period. I think it speaks volumes.
If they are going to sell anything new at a discount it should be one of two things. Either: “We wasted Millions of $’s and all we got was this lousy T-shirt!” or “I’m no longer with Stupid, it just cost me more than a few million dollars!”
Or you’ll get them really cheap at the “Going Out of Business Sale.” By the look of things that isn’t too far off in the distance if what I’m watching is any indication.
© 2012 Mark St.Cyr