M.E.E.T. Retail Workers.com

Macy's Lundgren gets bonus, pay hike in '08Business Courier of Cincinnati

Macy’s Inc. awarded Terry Lundgren, its top executive, a $900,000 bonus in 2008, for a total pay package of $14.8 million, the lion’s share of which came in the form of stock and options.

This represents a $400,000 raise from 2007, when Lundgren collected a combined compensation package $14.4 million. In 2008, the New York-based executive took a salary of $1.5 million, compared with $1.49 million the year before, according to the company’s proxy report filed with the Securities and Exchange Commission. His other forms of compensation rose by $200,000, to more than $496,000 from $291,000. These other expenses include use of the company car and driver ($298,000), aircraft use ($117,400) and an executive merchandise discount ($28,500).

In addition, Macy’s paid $29,000 in tax gross-up payments related to the merchandise discount and for personal use of company aircraft, which is recorded as income.

Macy’s awarded Lundgren more than 300,000 stock options, valued at almost $2.3 million, with an exercise price at $24.85, putting them deep underwater (the stock was trading at $9.16 Wednesday afternoon). He also collected roughly 388,000 shares of restricted stock valued at more than $9.6 million. These latter awards were granted under a stock credit plan wherein they vest over a two-year period and then are subject to two- and three-year holding periods.

In 2008, Macy’s profit declined to $280 million, from $893 million in fiscal 2007, while revenue fell 5.4 percent, to $24.9 billion from $26.3 billion. The company in February said it would cut 7,000 jobs in a corporatewide restructuring that would streamline its national merchandising system. At the same time, Macy’s said it would eliminate merit salary increases for all executives and would recommend the board reduce executive perks, including merchandise discounts, company cars, company-paid life insurance and financial counseling. Those reductions would be reflected in next year’s proxy.

To determine Lundgren’s bonus award, the compensation committee selected a series of measures: earnings before interest and taxes, sales and cash flow. The committee determined that Macy’s performance fell below the threshold level for EBIT and sales, but hit maximum for cash flow. The maximum permitted annual bonus payment would have been $7 million.

Macy’s also noted that stock award expenses for Lundgren fell into the negative territory in 2008, to a loss of $2.5 million, reflecting declines in values of shares granted in 2006 and 2004.

Cincinnati-based Macy’s (NYSE: M) operates almost 850 department stores.

http://cincinnati.bizjournals.com/cincinnati/stories/2009/03/30/daily48.html

Posted: Tue Feb 02, 2010 12:58 pm Post subject:

Isn't that old news? I wonder what Terry got in 2009?
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Employee Free Choice Act NOW!!

Posted: Tue Feb 02, 2010 9:34 pm Post subject:

Posted: Wed Feb 03, 2010 7:23 pm Post subject:

In light of what is going on in the stores, it was just a friendly reminder. I'm sure there will be more news on Terry. And I'll be sure to post what I find. I did see he was at a big party in FL that hit the newswire.