J.C. Penney hires Home Depot’s Marvin Ellison

J.C. Penney announced that Marvin Ellison, from Home Depot, will become the new CEO-designee in November, replacing Ron Johnson. Ellison will officially hold the position in August 2015.

Ellison becomes the second African-American CEO in the, retail industry with Rosalind Brewer of Sam’s Club.

“J.C. Penney thought, wrongly, that no update on succession was okay seeing as the man who saved the company from death was to be at the helm,” Belus Capital Advisors analyst Brian Sozzi, who has a “hold” rating on the retailer, wrote in a note to investors.

Ellison’s base salary is lower than either of his two predecessors, getting 1.5 million a year. When he heads the Home Depot last year, he had a total salary compensation package worth $4.37 million.

Ellison will have to clean up the mess that created by his predecessor Ron Johnson, losing $4 billion in his stint before leaving his position in 2013.

Stock shares have decline 23 percent this year while few shoppers are going to its stores. Its shares plummeted 29 percent last week.

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