J.C. Penney CFO Ed Record leaves abruptly

  • Push-out Score suggests push-out forces
  • After around three years on the job
  • Accolades, praise, thanks and good wishes for Record
  • Andrew Drexler taking over in the interim
  • Search for a successor
  • Record said 55 words

(exechange) — Plano, Texas, July 10, 2017 — Ed Record, finance chief of J.C. Penney, leaves. It is an abrupt change. As announced by J.C. Penney Company, Inc. in a news release and in a regulatory filing published on Monday, July 10, 2017, Edward J. (Ed) Record leaves the post as chief financial officer at the department store chain in a surprising move after around three years on the job, effective July 11, 2017.

Record’s move comes eleven months after Marvin R. Ellison took over as chairman of J.C. Penney Company, Inc.

J.C. Penney will undertake a search for a successor.

Record’s duties are taken over in the interim by Andrew Drexler, most recently chief accounting officer and controller at J.C. Penney Company, Inc.

“To pursue other interests”

The sudden management change is explained as follows. J.C. Penney said: “Edward Record has informed the Company of his intention to step down from his position as executive vice president, chief financial officer effective July 11 to pursue other interests.”

The phrase “to pursue other interests” opens the door to speculation.

Precise information about the future plans of Record was not immediately available.

Wake-up call

Generally speaking, it is often an alarm signal for stockholders when a CFO leaves the position abruptly and without an understandable explanation.

Share price decline

The change follows a sharp decline in the share price of J.C. Penney Company, Inc. since February 2012.

Chaired by Marvin R. Ellison

J.C. Penney Company, Inc. is chaired by Marvin R. Ellison.

Marvin R. Ellison has been the Chief Executive Officer of J. C. Penney Company, Inc. since August 1, 2015 and has been its Chairman since August 1, 2016.

On the job as CFO since 2014

Record served as Chief Financial Officer and Executive Vice President of J. C. Penney Company, Inc. since March 24, 2014.

Record spent over six years at Stage Stores, a Houston, Texas-based retailer that operates department and off-price stores, most recently serving as chief operating officer and, prior to that, chief financial officer.

Before Stage, Record served as senior vice president of finance at Kohl’s and as controller and senior vice president of finance at Belk.

Earlier in his career, he held a variety of finance positions of increasing responsibility at Federated stores, leading to his eventual appointment as controller and vice president of finance.

Record holds a Bachelor of Arts from Princeton University and an MSIA from Carnegie Mellon University.

Unplanned

As a general rule, when a top leader announces to step aside with no permanent successor in place, it’s a sign that the change was unplanned and too early.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Ed Record’s sudden move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.

Read the full story in the exechange report 29.2017 ($).