Breaking News from CNBC's Scott Wapner: Ron Johnson Out As J.C. Penney CEO -- Sources
When: Today, Monday, April 8th
Where: CNBC's "Closing Bell with Maria Bartiromo"
Following is the unofficial transcript of breaking news from CNBC's Scott Wapner. Here is a link to embeddable video: http://video.cnbc.com/gallery/?video=3000159906.
All references must be sourced to CNBC.
SCOTT WAPNER: CNBC HAS LEARNED FROM A SOURCE FAMILIAR WITH THE SITUATION THAT RON JOHNSON IS OUT AS CEO THE OF J.C. PENNEY. A FORMAL ANNOUNCEMENT COULD COME REALLY ANYTIME HERE FORWARD. BUT THE NEWS IS, ACCORDING TO A SOURCE, AND AGAIN A RELIABLE ONE FAMILIAR WITH THE SITUATION, THAT RON JOHNSON IS NO LONGER THE CEO OF J.C. PENNEY. WE ALL KNOW WHAT'S HAPPENED WITH THE STOCK OVER THE LAST YEAR, DOWN 50% OVER THAT TIME RON JOHNSON TAKING OVER AS CEO OF J.C. PENNEY JUNE OF 2011. WOW SHARES ROSE SEVENTEEN AND A HALF PERCENT THAT DAY THERE WAS SO MUCH MORE OPTIMISM ABOUT WHAT RON JOHNSON FORMERLY OF APPLE WAS GOING TO DO WHEN HE CAME TO J.C. PENNEY AGAIN, HE PUT IN THAT NEW NO SALE STRATEGY RIGHT FROM THE GET GO IT WAS CONTROVERSIAL IT WAS RISKY AND IT HASN'T WORKED ALL THAT WELL. SALES HAVE BEEN DOWN ALMOST EVERY SINGLE QUARTER, EACH OF THE LAST FOUR QUARTERS THE COMPANY HAS CERTAINLY GONE THROUGH A LOT OF TROUBLE YOU CAN SEE THE STOCK RIGHT NOW IS UP TEN PERCENT IN THE AFTER HOURS ON THE NEWS THAT WE ARE BREAKING TO YOU RIGHT NOW THAT RON JOHNSON IS OUT AS CEO THE OF J.C. PENNEY. THERE'S CERTAINLY A LOT TO GO THROUGH HERE WHEN YOU FIGURE OUT EXACTLY WHAT IT MEANS FOR HIS PAY STRUCTURE. REMEMBER, WHEN HE TOOK OVER AT J.C. PENNEY, HE GOT $50 MILLION IN STOCK TO MAKE UP FOR SOME OF THE APPLE STOCK THAT WAS GOING TO VEST IN A SHORT PERIOD OF TIME THAT HE WAS LEAVING BEHIND AT APPLE. HE BOUGHT NEARLY $50 MILLION IN WARRANTS AT THAT TIME TO BUY SEVEN AND A QUARTER MILLION SHARES OF J.C. PENNEY STOCK. THAT COULD BE EXERCISED SOME SIX YEARS LATER AT A PRICE OF $29.92. THE STOCK HAS BEEN SITTING AT ABOUT $15 AND CHANGE AT THE CLOSE OF TRADING TODAY. CERTAINLY GETTING A SPIKE HERE. BUT RON JOHNSON'S TENURE AT J.C. PENNEY APPEARS TO BE OVER NOW ACCORDING TO A SOURCE FAMILIAR WITH THE SITUATION.
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