Myron Ullman has to be a pretty happy guy. He’s the CEO of JCPenney, burgeoning fashion powerhouse with mannequins of debatable obeseness, whose roster of designers now includes Charlotte Ronson, Kimora Lee Simmons, and Mary-Kate and Ashley Olsen. Today, The Wall Street Journal reports that our friend Myron will make more than he needs to (enough to not ever have to shop at JCPenney this year). His pay package will include $1.5 million cash in base salary, plus $1.6 million in both stock options and grants (that he won’t be able to use immediately, but still), bringing his total package to at least $4.7 million.
Penney’s operates under an incentive-based pay system for executives — a common practice for retail operations — so if the store outpaces financial expectations in 2010, Ullman could take home a considerably higher pay package. Analysts predict that Penney’s earnings will come in at $1.54 a share, while Penney’s predicts its earnings will hit $1.55. If Ullman can work those numbers like he can work a Segway, up to $1.58 a share, his package could total $9.5 million. And if he can work them up to $1.86, his package could reach $11.4 million. At that point it caps, and he no longer has incentive to jump-start the next great Penney’s collaborative line, which by all means should be seashell toe rings by Jessica Simpson.