Ackman Quits J.C. Penney Board

After some contentious back-and-forth between J.C. Penney's (NYSE: JCP  ) executive management and its largest shareholder, board member Bill Ackman, the two sides have opted to part ways, at least partly, as Ackman resigned from the J.C. Penney board effective yesterday, the company announced today. Ackman's Pershing Square Capital Management owns approximately 18% of J.C. Penney's shares.

Replacing Ackman on the board will be Ronald Tysoe, former vice chairman of Federated Department stores, which is now Macy's, along with "another highly qualified new director in the near future," Penney said.

Commenting on his decision to resign from J.C. Penney's board, Ackman was quoted in the company press release as saying, "At this time, I believe that the addition of two new directors and my stepping down from the Board is the most constructive way forward for J. C. Penney and all other parties involved."

J.C. Penney also reaffirmed its support of current CEO Myron Ullman and chairman Thomas Engibous, both targets of recent letters from Ackman outlining what he deemed to be shortcomings in J.C. Penney's current leadership. Ackman called for a quicker search to replace Ullman and also called for Engibous to be replaced as board chairman.

In regards to Ullman and Engibous, J.C. Penney said in today's release that both "have been working tirelessly to position the Company for future success."

CNBC quoted Ackman as saying that he had no immediate plans to sell his shares. He had joined Penney's board in February 2011 and was a supporter of former CEO Ron Johnson. Today's announcement caps several days of boardroom drama where Ackman went public with two scathing letters to the board, saying the board has "ceased to function effectively." He also questioned the board's hiring and firing practices and "aggressive" inventory purchases.

Engibous fired back in a pair of press releases saying that Ackman's comments were "misleading, inaccurate and counterproductive."

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2592947, ~/Articles/ArticleHandler.aspx, 9/29/2016 11:39:52 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
JCP $9.25 Down -0.30 -3.14%
J.C. Penney CAPS Rating: *
M $36.05 Down -0.05 -0.14%
Macy's CAPS Rating: **