ATLANTA, April 1 (Reuters) - Macy’s Inc (M.N) Chairman and Chief Executive Terry Lundgren was paid less in 2007 than a year earlier, as the retailer awarded no bonuses based on company performance.
According to the retailer’s proxy filed with the U.S. Securities and Exchange Commission on Tuesday, Lundgren earned $14.42 million in 2007, including salary, the value of stock and option awards, and other compensation. That is down from his pay of $16.27 million for 2006.
Lundgren’s salary rose to $1.49 million last year from $1.38 million in 2006, but he and other top Macy’s executives received no bonus or non-equity incentive plan compensation in 2007.
Executives received no cash incentive for 2007 because “Macy’s did not achieve the threshold level of performance established under the company’s bonus plan,” the proxy stated.
At Macy‘s, formerly called Federated Department Stores, sales and earnings fell in 2007. Net income for fiscal 2007, which had 52 weeks, decreased to $893 million from $995 million in fiscal 2006, a 53-week year. Sales for 2007 came to $26.3 billion, down 2.4 percent from $26.97 billion for 2006.
Macy‘s, which is consolidating several regional divisions to cut costs, said in its annual report that it plans to open five new department stores and one furniture gallery in 2008, compared with nine Macy’s department stores, one furniture gallery and two Bloomingdale’s stores opened in 2007.
Macy’s shares, which have fallen 45 percent in the past year, closed up $1.61, or 7 percent, at $24.67 on the New York Stock Exchange on Tuesday.
Reporting by Karen Jacobs, editing by Richard Chang