Jeff Gennette, President and CEO of Macy’s Inc.
Mark Kauzlarich | Bloomberg via Getty Images
Macy’s handed out $ 9 million in capital awards to six top executives days after laying off about a quarter of its corporate workforce.
Department store chain CEO Jeff Gennette received restricted shares worth $ 3.7 million on July 9, according to documents filed with the Securities and Exchange Commission. The other five executives, including chief legal officer Elisa Garcia and chief human resources officer Danielle Kirgan, received awards ranging from $ 350,000 to $ 3 million, according to the documents.
A Macy’s representative said in an email that due to the pandemic, the retailer delayed the timing of its annual capital donations to management and the board this year. She said the company will describe its 2020 compensation plans in more depth in its 2021 proxy presentation.
In February, before the Covid-19 virus outbreak was declared a global pandemic, Macy’s announced plans to close 125 stores permanently for three years as it cut 2,000 corporate jobs. Then on June 25, Macy’s said it will cut another 3,900 corporate jobs, or 3% of its total workforce at the time, to cut costs.
Macy’s has also said it is still evaluating closing more stores, in a faster time frame due to the impact it has had on the loss of revenue during the pandemic.
Macy’s shares have fallen nearly 60% this year. It has a market capitalization of $ 2.2 billion.
Nor is it the only department store chain struggling. Several have been pushed to bankruptcy court: Neiman Marcus, JC Penney, and Stage Stores. Nordstrom will also definitely close more than a dozen stores this year.
Gennette had temporarily taken a pay cut during the pandemic, which started in April. But that was also recently reversed July 1 for Gennette and other top Macy’s executives, according to an SEC filing.
Bloomberg first reported on the introductions Thursday morning.
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