Jeff Gennette’s compensation rose 7.5 percent to $11.1 million last year as the chief executive officer steered Macy’s Inc. through the coronavirus crisis.
Gennette’s salary fell to $975,000 from $1.3 million the year before as the CEO did not receive compensation starting April 1, 2020, and for “the duration of the crisis” while other top executives at the retailer saw pay decreases. Macy’s resumed its normal compensation schedule at the end of June.
The decline in Gennette’s salary was outpaced by increases in stock awards valued at $7 million and incentive pay totaling $2.8 million. Gennette might not realize the full value of the stock awards given vesting schedules and stock price fluctuations.
And according to the proxy, Gennette took home considerably less than his pay on paper while he was also far from the highest paid business titan.
Macy’s noted: “Semler Brossy, the compensation consultant for the CMD Committee, completed a market review and determined our CEO’s target total compensation of $10,760,000 was positioned below the median of the peer group at the 42nd percentile.
“Mr. Gennette’s realized compensation each year is largely dependent on performance results,” Macy’s said in the proxy. “In 2020, Mr. Gennette’s realized compensation was $3,737,500 — approximately 35 percent of his target compensation. This consisted of above-target payout for the annual incentive plan and zero payout in the long-term performance plan.
Regardless, it’s a big paycheck — and a big job. Macy’s logged $17.3 billion in sales last year and in its proxy statement with the Securities and Exchange Commission, which included the compensation information, billed itself as “a digitally led omnichannel retailer.”
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