Macy's Pays Millions To Execs While Cutting 3,900 Jobs
CEO Jeff Gennette received restricted stock worth $3.7 million on July 9 and 5 others, including legal chief Elisa Garcia and Daniel Kirgan, human resources chief, received awards from $350,000 to $3 million.
The Bloomberg report also indicated that the board reversed on July 1 the temporary salary reduction that had been in place since April. Gennette, had pledged to take no salary, it's now back to his annual salary rate of $1.3 million.
Traditionally Macy’s top management options and performance shares were tied to business goals, but those given out last week will be vested if the employees remain on the job for a few years, regardless of the firms result.
In a separate article, the Wall Street Journal reported that the Justice Department stated that Geoffroy van Raemdonck, CEO of Neiman Marcus Group, and other top execs shouldn’t get their bonuses unless they can show they helped grow earnings at the bankrupt company.