Press release from PR Newswire
J. C. Penney Company, Inc. Grants Previously Disclosed Equity Inducement Awards to Ron Johnson and Michael Francis
Wednesday, November 02, 2011
PLANO, Texas, Nov. 2, 2011 /PRNewswire/ -- In accordance with New York Stock Exchange rules regarding equity inducement awards, J. C. Penney Company, Inc. (NYSE: JCP) today announced that it is granting previously disclosed equity awards to Ron Johnson, its newly appointed chief executive officer, and Michael R. Francis, the Company's new president. The Company had disclosed these awards in connection with the announcements of Mr. Johnson's and Mr. Francis' appointments in June and October, respectively.
Mr. Johnson's award of 1,660,578 restricted stock units (RSUs) was granted yesterday, Nov. 1, 2011, when he assumed the position of chief executive officer of the Company. The vesting date for these RSUs is Jan. 27, 2012, but may vest earlier in the case of employment termination due to death or disability, if Mr. Johnson terminates his employment at the Company for "good reason" or if the Company terminates his employment for any reason other than cause. This RSU award was designed to partially replace the value of equity granted by Mr. Johnson's former employer, Apple, Inc., which was scheduled to vest in March 2012 and September 2014 but was forfeited upon termination of employment.
Mr. Francis' award of 1,000,000 RSUs will be granted on Nov. 16, 2011. The RSUs will vest in thirds, on the fourth, fifth and sixth anniversaries, respectively, of the grant date, provided Mr. Francis remains continuously employed with the Company through those dates. The award vests pro rata if Mr. Francis is terminated for any reason other than cause, and it will fully vest if employment terminates in certain cases within two years following a change of control of the Company.
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About J. C. Penney Company, Inc.
J. C. Penney Company, Inc., one of America's leading retailers, operates over 1,100 jcpenney department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com. Serving more than half of America's families each year, the jcpenney brand offers a wide array of private, exclusive and national brands which reflect the Company's vision to be America's shopping destination for discovering great styles at compelling prices. Traded as "JCP" on the New York Stock Exchange, the $17.8 billion retailer is transforming its organization to build a sustainable, profitable enterprise that serves its customers, engages its associates and rewards its shareholders. For more information visit, www.jcpenney.net.
SOURCE J. C. Penney Company, Inc.