Macy's execs get compensation cuts after weak year. Did their Click and Collect omnichannel contribute to results?
Macy's Brass Sees Incentive Bonuses Cut to Zero After Weak Year
The board decided to award no bonuses after falling short of its sales, cash flow and earnings goals, Macy’s said Wednesday in a regulatory filing. Excluding changes in the value of his pension, Chief Executive Officer Terry Lundgren was paid $11.6 million in 2015, an 8.6 percent decrease from the $12.7 million he received in 2014.
Lundgren is trying to turn Macy’s around after slow store traffic and excess inventory hurt results. The chain has closed underperforming locations and boosted discounts to clear out seasonal items. Still, a strong U.S. dollar is taking an additional toll on spending by foreign tourists. And Lundgren is under pressure to better capitalize on the retailer’s real estate portfolio at the urging of activist investors Starboard Value and Greenlight Capital.
Macy’s shares fell 47 percent in 2015, following six straight years of gains.