J.C. Penney Co. said Chief Executive Myron "Mike" Ullman will leave the department store chain on Feb. 1, adding new detail to the transfer of power to his successor, Apple Inc. retail chief Ron Johnson.
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The three-month transition period, laid out Monday, comes after questions were raised last week about Penney's plans for the handoff, which included leaving a high number of usual CEO responsibilities under Mr. Ullman as executive chairman for an indefinite period.
The Wall Street Journal reported Friday that management experts described the initial plan for the sharing of duties as unusual and said the arrangement risked confusion in the department store's executive ranks about who was in charge.
As of last week, Penney had set on date to end the power sharing. The board changed course over the weekend, however, and on Monday the company said Mr. Johnson will take full control of the company on Feb. 1, days after the start of the Plano, Texas, retailer's next fiscal year.
Penney shares rose nearly 3%, or 90 cents a share, to $35.19 in 4 p.m. composite trading on the New York Stock Exchange on Monday.
Mr. Ullman, 64, said in a prepared statement that he looked forward to helping with the transition and then stepping aside, "as has been my practice in previous CEO positions." In an interview Friday, Mr. Ullman said Mr. Johnson and the rest of the board would decide "when my help is no longer required.'' And when that occurs, "I'll go the previous day,'' Mr. Ullman quipped. "I am eager to get out of the way when it's the right time.''
Mr. Johnson declined to comment when reached on Monday.
Mr. Johnson, 52, credited with building Apple's ground-breaking retail business, will join Penney's board on Aug. 1 and start as CEO on Nov. 1. Initially, he will be responsible for marketing and merchandise while Mr. Ullman, as executive chairman, will retain control over a number of typical CEO functions such as logistics, corporate strategy, finance and accounting, and stores.
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The original division of labor came as a surprise to activist investors on Penney's board. Board member William Ackman, who along with Steve Roth played a central role in recruiting Mr. Johnson to the company from Apple, said the pair weren't involved in discussions about the division of labor and weren't briefed before the company circulated an organizational chart describing the pair's duties to Wall Street analysts.
The chart detailed a division of labor that involved an unusual amount of authority for the outgoing CEO, Mr. Ullman. When a retired chief executive serves as full-time executive chairman, he or she usually handles relationships with regulators, shareholders and key customers.
In an interview last week, Mr. Ullman said he worked out the power-sharing split with Mr. Johnson over the last few weeks, explaining it made sense for him to retain control of a number of functions to ease the Apple executive into his first job in the corner office. Mr. Ullman wasn't available to comment on Monday, a spokeswoman said.
Penney now says it will limit the transition period to the three months that align with the critical fourth quarter holiday sales period, which last year accounted for nearly a third of Penney's annual sales. The long lead times in retailing mean Mr. Johnson's efforts to remake the company likely won't be evident until late in 2012.
"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," J.C. Penney's lead director Thomas J. Engibous said in a statement.
Mr. Johnson was a veteran of long stints at department store chains Mervyn's and Target Corp. before he joined Apple in January 2000.
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