NEW YORK — Terry J. Lundgren, Macy’s Inc.’s chairman, president and chief executive officer, received an 18.4 percent pay raise in total compensation for 2011.
This story first appeared in the March 29, 2012 issue of WWD. Subscribe Today.
The ceo’s salary was disclosed in the retailer’s definitive proxy, filed Wednesday with the Securities and Exchange Commission.
The raise in 2011 brought Lundgren’s total pay package to nearly $17.7 million from $14.9 million in 2010. That includes a base salary of $1.5 million, $4.6 million in stock awards, $3.1 million in option awards, $5.1 million from a nonequity incentive plan bonus and other compensation perks, which includes the value of $69,611 for aircraft usage.
Macy’s executive compensation links pay to performance, and the regulatory filing said that 87 percent of Lundgren’s “targeted total direct compensation (salary, annual bonus and grant date value of long-term incentive awards) for fiscal 2011 was at risk and tied to financial performance, corporate objectives and/or stock price performance.”
Karen Hoguet, chief financial officer, received an 8.8 percent raise to $4.3 million for her total compensation package from $4 million in 2010. That includes a base salary of $812,000, plus $794.980 in stock awards and $529,999 in option awards. Her nonequity incentive plan compensation for last year was $1.3 million.
The proxy also disclosed that nonemployee directors are entitled to $60,000 in annual compensation, which may, at the director’s election, be received in cash or as a stock credit. Those who serve on committees receive an additional $10,000 and those who chair the individual committees are entitled to compensation of $20,000 for that effort. Directors may also participate in the philanthropic matching gift program of the Macy’s Foundation. The program provides for a match of up to $22,500 of gifts made by the director to approved charities in any calendar year.
The company plans to hold its annual meeting of shareholders on May 18 at 11 a.m. at Macy’s office in Cincinnati.