Vornado’s Roth may lose Penney board seat over ousting of retailer’s CEO

New York /
May.May 10, 2013 11:00 AM

Vornado Realty Trust chairman Steven Roth could be ousted from the board of J.C. Penney for playing a role in recruiting the retailer’s ousted CEO Ron Johnson, the Wall Street Journal reported.

A proxy firm is advising that J.C. Penney investors remove Roth, a director who serves on the board’s corporate governance committee. Egan-Jones Proxy Services did not comment to the Journal on Roth’s connection to the recruitment.

Committees “should be comprised solely of independent outside directors for sound corporate governance practice,” the firm said in its report.

Last month, the board ousted Johnson and replaced him with his predecessor Myron Ullman. Last year proved disastrous for the retailer, as sales fell 25 percent and the stock price plummeted 50 percent. Nevertheless, J.C. Penney has held a large amount of prime real estate at an extremely low cost, due to its advantageous leases.

Roth is one of the retailer’s biggest shareholders. He owns about 5 percent of Vornado’s shares and, as of March 31, Vornado had a 6.1 percent stake in J.C. Penney. [WSJ]  Mark Maurer


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
Free and clear: Vornado pays off debt at 220 CPS
Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
(Photo Illustration by The Real Deal with Getty)
Big-box retail growth has Bed Bath & Beyond landlords thinking
Big-box retail growth has Bed Bath & Beyond landlords thinking
Steve Roth finally flips Madoff’s former Montauk home
Steve Roth finally flips Madoff’s former Montauk home
Steve Roth finally flips Madoff’s former Montauk home
Vornado Realty Trust chairman Steve Roth and 401 Seventh Avenue (Getty, LoopNet, Vornado Realty Trust)
Vornado eyeing NYC’s casino sweepstakes
Vornado eyeing NYC’s casino sweepstakes
Chick-fil-A CEO Andrew Cathy and a rendering of Chik-fil-A 2205 Central Park Avenue in Yonkers  (Chik-fil-A/City of Yonkers)
Chick-fil-A hatches first Westchester location
Chick-fil-A hatches first Westchester location
Harry Macklowe with 1 Wall Street
Macklowe’s 1 Wall Street tops Manhattan’s largest retail leases of 2022
Macklowe’s 1 Wall Street tops Manhattan’s largest retail leases of 2022
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...