Terry Lundgren saw his total compensation as Macy’s Inc.’s chairman and chief executive officer increase 37.1 percent to $16.5 million, and its cash portion grow by more than 20 percent, in 2014.

This story first appeared in the April 2, 2015 issue of WWD. Subscribe Today.

According to the company’s definitive proxy, released to the Securities and Exchange Commission Wednesday, Lundgren earned nearly $4.5 million more than the $12 million reported in the prior year as his cash bonus and stock and option awards increased.

His salary was unchanged at $1.6 million, but his cash bonus, or non-equity incentive plan compensation, rose 38.2 percent, to $2.6 million from $1.9 million, 59.8 percent above his base salary. Both the company’s 2014 adjusted earnings before interest and tax of $2.89 billion and sales of $28.55 billion landed between the threshold and target amounts set by the compensation and management development committee of the board, while cash flow of $1.93 billion qualified as outstanding.

Lundgren’s stock and option awards totaled $8.3 million, up 5.5 percent from the $7.9 million granted in 2013.

These awards reflect the company’s performance over three years in adjusted earnings before interest, taxes, depreciation and amortization; adjusted EBITDA margin; average return on invested capital, and total shareholder return when measured against Macy’s peer group. Although the SEC requires that these awards be reported at the fair market value on the date they are granted, those amounts may not be realized in full by the named executives because of stock fluctuation, vesting schedules and other factors.

Much of the increase in Lundgren’s reported compensation could be attributed to the essentially actuarial measure of “changes in pension value and nonqualified deferred compensation earnings,” which last year rose more than sixfold to $3.8 million from $620,000 in 2013. His other income more than doubled, to $233,000 from $98,000, with about half of the 2014 amount attributable to matching contributions by the company under its deferred compensation plan.

Lundgren is the only Macy’s executive permitted to make personal use of the company aircraft, and his other income includes $75,000 allotted for that purpose.

Jeff Gennette, named president of Macy’s last year, had total compensation of $4.3 million, 41.9 percent above the $3.1 million he earned in 2013. The cash component of his pay was up 38.9 percent to $1.8 million from $1.3 million.

In its filing, Macy’s noted that its comparable sales rose 0.7 percent, its fifth consecutive year of comp increases but the lowest increase in that time span. Including sales from licensed departments, comps were up 1.4 percent. Other metrics showed consistent improvement over the five years, including net sales and adjusted EBIT as well as adjusted earnings before interest, taxes, depreciation and amortization margin of 14 percent last year; return on invested capital of 22.4 percent, and adjusted earnings per share of $4.40.