Chairman, President & CEO of Macy's, Inc., Terry J. Lundgren
The top managers at Macy’s Inc. took home smaller bonuses and restricted-stock awards this year, but the stock market made sure no one got their feelings hurt.
CEO Terry Lundgren received $11.4 million in total compensation for his performance in the 2013 fiscal year, up 0.9 percent from 2012. Four other members of his management team took pay cuts for the year. Macy’s posted a $1.5 billion profit in the fiscal year ended Feb. 1, outperforming other department stores and driving its stock price from $42.18 last fall to $60.88 April 2.
That allowed all five of Macy’s highest paid executives to cash in stock option grants from prior years. More than 1.2 million shares were unloaded by Macy’s top managers since November, generating total proceeds of $58.8 million.
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CINCINNATI - The top managers at Macy’s Inc. took home smaller bonuses and restricted-stock awards this year, but the stock market made sure no one got their feelings hurt.
Macy’s revealed compensation details for top executives in its annual proxy statement to shareholders, filed with the Securities and Exchange Commission this week.
CEO Lundgren led the way, with $41.2 million from the sale of 870,00 shares since November 15. He still holds 415,688 Macy’s shares, according to SEC filings.
The compensation committee of Macy’s board wasn’t shy in its praise of Lundgren this year, crediting him with leading the company through the acquisition of the May department store chain and embarking on a strategic growth plan known as “My Macy’s” in 2008.
“We have grown from being a $15 billion regional department store company to a national omnichannel retailer with over $27.9 billion in sales,” said the report. “We have become a customer-centric organization that embraces localization, a seamless omnichannel blend of stores, online and mobile, and more meaningful customer engagement on the selling floor and all other customer interactions.”
Two other members of the management team – Jeffrey Gennette and Peter Sachse - took pay cuts of up to 40 percent. That’s mostly because the restricted-stock grants they received when promoted to top management roles in 2012 were not repeated this year.
Gennette, who this week added Lundgren’s former role of president to his duties as chief merchandising officer, received $2.7 million in 2013 compensation, down 39.8 percent from last year. He has raised $4.4 million from the sale of Macy’s stock since November.
Chief Financial Officer Karen Hoguet received $2.7 million in total compensation in 2013, down 0.4 percent from the prior year. Hoguet received $5.1 million from stock sales in the last six months.
Chief Stores Officer Peter Sachse received $2.7 million in total compensation in 2013, down 28.5 percent from the prior year. Sachse recently sold 53,000 shares in a $3 million transaction Mar. 4.
Chief Private Brand Officer Timothy Adams received $2.7 million in total compensation, down 1 percent from 2012. He earned $5 million from the sale of Macy’s shares since November.
WCPO excludes changes in pension value from its calculation of executive compensation, counting all forms of cash-based pay along with restricted stock grants and option awards.
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For more stories by Dan Monk, go to www.WCPO.com/monk . Follow him on Twitter @DanMonk9.