Retailer revamps compensation
February 26, 2001-- Home Textiles Today,
PLANO, TX -With J.C. Penney Co. restructuring its organization to a centralized buying organization with new titles and responsibilities, the company has changed its compensation plan to be more aligned with the rest of the department store community.
A significant change is the reduction of incentive pay as a percent of total cash compensation. The change is designed to bring this element "to be in alignment with the competitive norm in the industry," said Kathi Child, director of compensation and benefits.
At the same time, buyers will be compensated according to their individual area of responsibility's contribution to sales and profits. This change provides "a more granular focus on individual contribution and accountability."
The changes, effective Feb. 1, are to enable Penney "to pay competitively if we are to hire and retain the best talent."
The company also has changed its job titles and responsibilities to be more in alignment with the rest of the retailing industry. As an example, the title of president of a division such as home has been changed to senior vp, gmm.