Terry Lundgren took a 7.4 percent cut in total compensation last year as a marked increase in his stock awards wasn’t enough to offset reductions in his options, cash bonus and car use.
According to the definitive proxy filed with the Securities and Exchange Commission Wednesday, Lundgren, chairman, president and chief executive officer of Macy’s Inc., earned a total of $14.9 million in 2010 versus $16.1 million in 2009. His salary was unchanged at $1.5 million and his stock awards rose 51.2 percent to $3.6 million.
The cash portion of his bonus — classified as nonequity incentive plan compensation — dropped 25 percent to $5.3 million from $7 million, the maximum permitted, a year earlier. His option awards fell 14.8 percent to $1.2 million and other compensation was off 65.6 percent, to $172,000. The big cut in the “other” classification was principally due to a reduction in the costs of Lundgren’s car expenses to just over $42,000 from over $261,000 in the prior year.
The proxy noted that the company took steps in 2010 that “enabled it to distinguish between the costs associated with [Lundgren’s] personal use and the costs associated with business use of the car and driver service.”
Because of fluctuating stock prices and vesting schedules, stock and option awards aren’t necessarily realized by the named executive officer, but companies are required to include them in the compensation tables when submitting proxies to the SEC.
In fiscal 2010, Macy’s more than doubled its net income, to $847 million, while sales rose 6.4 percent to $25 billion and were up 4.6 percent on a same-store basis.