JCP's Board is Behind Mike Ullman, Bill Ackman is Not Impressed

After retiring as CEO from J.C. Penney JCP in November 2011, Mike Ullman returned to the helm last month to try to save the failing retailer. While activist investor Bill Ackman wants Ullman replaced, the board of directors thinks otherwise.

Sources state J.C. Penney's board of directors is impressed with Mike Ullman's recent performance and encourage him to continue with the retailer. The upcoming back to school and holiday seasons are a crucial time of the year. These quarters were highly unprofitable one year prior with Ron Johnson.

Despite this support from the board of directors, Bill Ackman wants Ullman replaced. According to the New York Post, individuals close to Ackman claim he has stated he wants a new CEO within three to twelve months and has interviewed several retail executives for the position.

Many J.C. Penney investors are happy the board of directors are not succumbing to Bill Ackman's pressure as he was instrumental in the hire of Ron Johnson, claiming he is “the Steve Jobs of the retail industry”. Despite this rift, sources claim Ackman stated he will not interfere with Ullman's performance as CEO.

Regardless of CEO, investors are left questioning the accuracy of Bill Ackman's claim that shares are worth $75. The stock is trading at $19.03, up two percent, but down from the day high of $19.48.