CalPERS vs. JC Penney Overview CalPERS investment program began on February 22, 2000 when they include JC Penney on their annually localise total. CalPERS further exclaimed that due to declining sales and a deteriorating client base they had missed confidence in Penneys management. subsequent to the release of their focus list JC Penney made numerous strategic decisions to revitalize and boost the value of the company. Penney forced their current party boss operating officer James Oesterreicher to retire. Next instead of promoting from within, they searched for crude blood and hired former Barneys CEO Allen Questrom. Penney went on to sell genius its direct marketing building block to raise ceiling to reduce debt. They restructured the company to focus on its struggling division stores, cutting employees and closing hatful many stores. By kinfolk 29, 2003, the culmination of CalPERS active investment in Penney, JC Penney seemed to right the direct and was able to str eamline operations to be more than effective and profitable. Chronology of Events 2/22/00: CalPERS identifies 10 underperforming companies that leave alone serve as their primary focus for corporate big(a) medication activism for the 2000 proxy season. The Focus List is made up of two retail companies, JC Penney creation one of them, a bank, and 7 other corporations.
CalPERS has investments in more than 1600 US companies. The 10 included in the Focus List were selected due to their long bourn crinkle performance, corporate governance practices, and economic value added evaluations. JC Penney was named on this lis t for its disappointing stock price relative! to the retail industry. Its stock price was down almost 45% from January 1 1995 to December 31 1999, mend the S&P retail Department Stores Index increase by almost 43%. Due to declining sales and a deteriorating customer base, CalPERS believes the market has lost confidence in Penneys management. Additionally, cents Board refused to lend oneself multiple shareholder proposals that would declassify the...If you want to get a full essay, order it on our website:
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