J.C. Penney Company, Inc. (JCP): This Company’s CEO Got Off Easy

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A harsher system
Compare the above to what Groupon Inc (NASDAQ:GRPN)‘s board did last month. Like J.C. Penney Company, Inc. (NYSE:JCP), Groupon Inc (NASDAQ:GRPN) was struggling with revenue and punishing shareholders. Founder and CEO Andrew Mason wasn’t making the cut, and the board let him loose. Mason saw it coming, and before the firing said, “Our stock is down about 80%, it would be weird if the board wasn’t discussing whether I’m the right guy to do the job, it’s their chief responsibility to ask that question.”

That highlights the difference between a genuinely strong board, and a board that just looks good on paper. The strong board makes the difficult decisions because those are the right choices for the company. J.C. Penney Company, Inc. (NYSE:JCP) could learn something from Groupon.

The article J.C. Penney’s CEO Got Off Easy originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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