J.C. Penney Co. reported that it paid new Chief Executive Allen Questrom $16.5 million of cash and stock last year, plus options potentially worth $89.6 million if he can revive the company's stock to 10% annual growth. Penney hired Questrom last July to turn around the No. 2 U.S. department store chain's stagnant sales and falling profit. Penney shares also have declined the last three calendar years, though they've rebounded about 51% so far this year. Questrom, who is also chairman of the company, received options to buy 3.5 million shares for $16.06 as part of his hiring, according to a company filing with the Securities and Exchange Commission. The options could be worth as much as $89.6 million to Questrom if Penney shares rise 10% annually over the 10-year life of the options. If the shares gain 5% a year, the CEO could still reap as much as $35.4 million before the options expire, the filing estimated. Penney closed up 37 cents at $16.43 on the NYSE.