Myron Ullman, the chief executive officer of J.C. Penney Company, Inc. (NYSE:JCP) will receive a salary increase this year, based on the company’s latest regulatory filing with the Securities and Exchange Commission (SEC).

J.C. Penney Company JCP
J.C. Penney Company JCP

Based on the regulatory filing, Ullman is set to receive $1.5 million base salary for 2014 with a 200% target incentive award opportunity. J.C. Penney Company, Inc. (NYSE:JCP) also indicated that Ullman will receive $5,500,000 equity awards this year. He is also eligible to receive $3 million in bonuses.

Previous compensation

The Wall Street Journal reported Ullman earned more than $810,000 annual salary and other incentives bringing his total compensation to almost $1.6 million based on an earlier filing of J.C. Penney Company, Inc. (NYSE:JCP). The report indicated that Ullman’s other compensation included more than $913,000 in the form of personal use of the corporate aircraft.

Ullman’s target award may increase or decrease

According to J.C. Penney Company, Inc. (NYSE:JCP), the numbers of performance–based restricted stock units (RSUs) awarded to Ullman is a target award, which means its value may decrease of increase based on the extent as to which the company achieves the set performance measurements during the beginning of the fiscal year (performance cycle).

J.C. Penney Company, Inc. (NYSE:JCP) explained that the Committee of the Whole sets a range of payout percentages (from 50% to 200%) relative to the company’s actual results for the fiscal year based. Its performance measures include free cash flow (50%) and EBITDA (50%).

J.C. Penney’s sales improved

Ullman returned as chief executive officer to help turn around the business of J.C. Penney Company, Inc. (NYSE:JCP). He previously served as CEO of the department store chain from 2004 to 2011. He replaced Ron Johnson after the company fired him for implementing transformation strategies that resulted to further declines in the company’s financial results..

The sales performance and liquidity of J.C. Penney Company, Inc. (NYSE:JCP) improved slightly when Ullman returned as CEO. The department store chain operator posted a profit and its margins climbed in its fiscal fourth quarter. The company reported positive sales results during the holiday shopping season.

Ullman is confident that the turnaround of J.C. Penney Company, Inc. (NYSE:JCP) is on track. He previously stated, “While 2013 brought a lot of change and challenges to J.C. Penney, the steady improvements in our business show that the Company’s turnaround is on track. In spite of the significant headwinds facing all retailers this season, including unprecedented harsh weather conditions in many parts of the country, we delivered on our promise to generate positive comparable store sales growth in the fourth quarter.”