J.C. Penney Co. Inc. has named a new chief financial officer two weeks after its previous executive’s departure.
Jeffrey Davis takes J.C. Penney’s (NYSE: JCP) executive vice president and CFO role effective immediately, the company announced Monday. He replaces Andrew Drexler, who served in the role on an interim basis following former CFO Ed Record’s resignation.
Davis most recently served as CFO at Darden Restaurants (NYSE: DRI), where he oversaw finance and accounting, corporate reporting, tax, internal audit, treasure and investor relations for the Orlando, Florida-based company.
His resume also includes leadership positions with Wal-Mart U.S. stores, Lakeland Tours, McKesson Corp. and The Hillman Co.
In his new role, he will be in charge of all of J.C. Penney’s financial operations, including managing finance teams at the company’s Plano headquarters and a shared services center in Salt Lake City.
He will focus on earnings opportunities; optimizing pricing; managing selling, general and administrative costs; overseeing inventory levels; and deleveraging debt, the company said in a prepared statement.
“(Davis) brings decades of finance, treasury and strategy experience from a host of leading companies, and will make an outstanding addition to our team,” J.C. Penney CEO Marvin Ellison said. “Jeff’s expertise will also be a tremendous asset to J.C. Penney as we continue to differentiate our business in a competitive retail climate and further strengthen our balance sheet moving forward.”
According to documents filed with the U.S. Securities and Exchange Commission, Davis will receive an annual base salary of $700,000 and a performance-base bonus worth up to 75 percent of his salary.
Other incentives include a one-time sign-on bonus of $50,000, and an additional $50,000 reimbursement if Davis loses more than $150,000 when selling his home to relocate for the job.
Additionally, he will receive stock awards worth $500,000 on the date of the grant. Fifty percent will be given as performance-based restricted stock units, 25 percent will be awarded as time-restricted stock units and the remainder as stock options. The restricted units will vest on the third anniversary of the grant date.
During his tenure, Record is credited with helping the retailer retire $1.4 billion in debt, enhance its revolving credit facility and receive several credit rating upgrades.
“On behalf of our board and leadership team, I want to thank Ed for his service and dedication to J.C. Penney during a challenging turnaround and a competitive retail climate,” Ellison said of Record’s departure. “The timing of his departure coincides with a demonstrated sales performance improvement in the second quarter, and we continue to expect to report significantly improved top-line results this quarter versus the first quarter.”
J.C. Penney will report its second quarter results on Aug. 11 before market open.