J.C. Penney shares sink 8.8% after CEO Ellison leaves for Lowe's
J.C. Penney Co. Inc. shares sank 8.8% in Tuesday premarket trading after the retailer announced that Chief Executive Marvin Ellison has resigned to become head of Lowe's Co. He will remain as director and CEO through June 1, but will step down from his role as chairman of the board immediately. Lead Independent Director Ronald W. Tysoe will serve as chairman and an Office of the CEO has been established, comprised of Chief Financial Officer Jeff Davis, Chief Customer Officer Joe McFarland, Chief Digital Officer Therace Risch and Executive Vice President of Supply Chain Mike Robbins. The four will share equal responsibility until a new CEO is named. Lowe's shares are up 2.6% after Ellison was named CEO of the home repair retailer, effective July 2, 2018, succeeding Robert Niblock, who previously announced plans to retire. In addition to J.C. Penney, Ellison has also served in senior-level operations roles at Home Depot Inc. . J.C. Penney shares are down nearly 21% for the year to date, Lowe's shares are down 6% for the period, and the S&P 500 index is up 2.2% for 2018 so far.