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RAPAPORT... Thomas Engibous, the chairman of the board of J.C. Penney Company, condemned undue pressure from hedge fund manager Bill Ackman to hire a new CEO within 30 to 45 days. The board of directors was also ''extremely disappointed'' that Ackman lobbied the media to push his own agenda given how he has been ''integrally involved in the board's activities since he joined two years ago. ''This includes leading a campaign to appoint the company's previous CEO (Ron Johnson) under whose leadership performance deteriorated precipitously. His latest actions are disruptive and counterproductive at an important stage in the company's recovery," Engibous added.  Ackman is the largest shareholder in JCPenney through his Pershing Square Capital Management firm, with nearly an 18 percent stake. On Thursday, he vented his frustration in a letter to CNBC, stating there are not likely more than five executives in the world sufficiently talented enough to operate JCPenney. Ackman added that former CEO Allen Questrom has agreed to step in under the ''right conditions'' and turn the retailer around. As a director on the board, Ackman pressured the company to hire Johnson away from Apple Inc. as its CEO in 2011, a decision which ultimately sent the retailer into a near-death tailspin. The board ousted Johnson in April and rehired former CEO Mike Ullman to stabilize the company. Engibous said, "When Mike returned, it was understood that there would be an effort to rebuild the management team, including a search process to identify his successor. The CEO search process, which began in earnest three weeks ago, will be careful and deliberate to ensure we find the right long-term leader for JCPenney. In the meantime, Mike and the leadership team will continue the work under way to improve the company's performance and get back on a path to profitable growth." "The board is focused on the important work of stabilizing and rejuvenating the business. It is following proper governance procedures, and members of the board have been fully informed and are making decisions as a group. This includes the CEO search process, which is being conducted at an appropriate pace. The board also continues to actively oversee management as it conducts the important work underway to rebuild the company. ''Mr. Ackman's statements are misleading, inaccurate and counterproductive," Engibous said. The board's communication to shareholders added that JCPenney has indeed made ''significant progress'' since Ullman returned four months ago. Since that time, Ullman has led ''significant actions to correct the errors of previous management and to return the company to sustainable, profitable growth.'' Ullman has stabilized the organization, improved financing and inventory levels, restored private brands and made its stores easier to shop, according to the board.
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