J.C. Penney (NYSE: JCP) chief executive Myron Ullman received an eight percent pay cut this year because the department store chain didn't meet its performance targets. The executive took him compensation valued at just $10.1 million this year, consisting of $1.5 million in base salary with no bonus. The bulk of his compensation, however, was in stock and stock options valued at nearly $8 million. Of course, there are also the perks that come with the job. Ullman received $601,986 in other compensation that included $416,750 for personal use of a company plane.

J.C. Penney shares didn't have so much fun after the stock was cut in half from a high of nearly $85 per share to its current price around $41 per share. Luckily, shareholders will get a chance to bring the high flying executive back to the real world during the company's May 16th annual shareholders meeting. There they will have a chance to vote on a proposal that would require shareholder approval for any further severance agreements with executives as well as other aspects of executive compensation packages.

The board doens't like the idea, saying its human resources committee is in the best position to evaluate an executive's compensation package. They are concerned that shareholders may demand compensation packages so low that many executives may be at risk of leaving the company at a critical time. Sometimes executive compensation may seem high, but is necessary to retain key talent. How the situation actually unfolds remains to be seen...