The board of
Chief Executive Officer
It has been a grim year for the retailer, whose
The company’s shares have plunged 60% this year.
The economic effects of the pandemic have ripped through the retail industry, which for years has fought to cope with changing consumer behavior and a shift to online shopping. Neiman Marcus, J.C. Penney Co. and others have filed for bankruptcy, while many more have cut jobs both in stores and at the corporate level.
Macy’s top executives typically receive their annual equity allotments in mid-March, but the board delayed those grants this year, the company said in an emailed statement. Instead they were granted last week.
The statement didn’t address questions about the board’s decision to delay the awards, but said that it will be explained in next year’s proxy.
On July 1, the board also reversed top executives’ temporary salary reductions that had been been in place since April. That means Gennette, who took no salary for that period, is now back at his $1.3 million annual rate.
Executive compensation tends to be decoupled from job cuts and broader organizational shifts in a company. Senior executives usually receive most of their pay in equity awards like restricted stock or options, which rise and fall in value in tandem with share prices.
In the past, Macy’s has handed top bosses stock options and performance shares that are tied to goals. But the awards handed to to Gennette and his five deputies last week will be theirs as long as they remain on their jobs for a few years, regardless of the firm’s results.
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