Looks like American Express’ Ken Chenault won’t be the only CEO singing the slashed salary blues this spring, as Macy’s embattled CEO Terry Lundgren seems to be joining him.
Reports emerged yesterday that Lundgren is facing an 8.6 percent pay cut this year, dropping his salary by $1.1 million to a mere $11.6 million.
Lundgren’s pay is a combination of stock and option pay and non-equity performance pay (a bonus based on how well the company does). Lundgren’s stock and options went up but he received no performance bonus, which is fair considering how badly Macy’s has performed over the last year.
Lundgren is a top paid CEO in the Cincinnati area where he calls home, with only the CEOs of Procter & Gamble, Kroger, American Financial Group and Fifth Third making comparable amounts.
Macy’s has been in something of a sales slump of late, with its myriad efforts at boosting sagging traffic like Macy’s backstage, a digital joint venture in China, and expanded beauty offerings — though Bluemercury has (as of yet) not quite kicked the sales situation into overdrive (or really out of neutral).
The store has also moved to limit costs as 2016 has gotten up and running. In January, the chain announced intentions to close 40 stores nationwide and about 3 percent of its workforce. Recent reports also indicate that the firm is investigating ways revenue possibilities can be wrung from its extensive real estate portfolio in the form of selling underused properties for redevelopment.
