Johnson's $80M Apple Stock Gamble: A Regrettable Bet
Ron Johnson left Apple in 2011 to become JCPenney's CEO. He gave up approximately $80 million worth of near-term Apple equity, including 250,000 restricted stock units (RSUs) scheduled to vest over the next three years.
The RSUs were awarded in 2008 and 2010 and would have converted into Apple shares. Johnson forfeited all 250,000 when he left Apple. JCPenney stated that the outstanding near-term Apple equity he sacrificed was worth around $80 million.
JCPenney attempted to compensate him with a package including 1,660,578 restricted stock units (RSUs) worth nearly $53 million. Johnson went further by personally investing around $50 million for warrants allowing him to buy approximately 7.26 million JCPenney shares at an exercise price of $29.92 per share.
JCPenney's board removed Johnson in April 2013 after his tenure as CEO lasted just over 17 months, during which the company's share price lost roughly half its value and Johnson received no severance payment.