Jeff Gennette, chairman and chief executive officer of Macy’s Inc.
Mark Kauzlarich | Bloomberg via Getty Images
Macy’s, just days after it laid off roughly a quarter of its corporate workforce, has doled out $9 million in equity awards to six of its top executives.
The crippled department store chain’s Chief Executive Jeff Gennette received restricted stock worth $3.7 million on July 9, according to filings with the Securities and Exchange Commission. The other five execs, including Macy’s legal chief, Elisa Garcia, and human resources chief, Danielle Kirgan, received awards ranging from $350,000 to $3 million, the filings said.
A representative from Macy’s said in an email to CNBC that because of the pandemic, the retailer delayed the timing of its annual equity grants to management and the board this year. She said the company will describe its 2020 compensation plans in more depth in its 2021 proxy filing.
In February, before the Covid-19 virus outbreak was declared a global pandemic, Macy’s announced it would be closing 125 stores permanently over three years as it slashed 2,000 corporate jobs. Then, hampered by its stores being forced shut temporarily, Macy’s on June 25 said it would be cutting another 3,900 corporate jobs — or 3% of its total workforce at that time — to reduce costs.
Macy’s has also said it is still evaluating closing more stores, over a faster timeline, due to the impact it has felt from losing sales.
Macy’s shares have fallen nearly 60% this year. It has a market cap of $2.2 million.
It isn’t the only department store chain struggling, either. A number have been pushed into bankruptcy: Neiman Marcus, J.C. Penney and Stage Stores. Nordstrom also is shuttering more than a dozen stores for good this year.
Gennette had temporarily taken a pay cut during the pandemic, beginning back in April. But that was also recently reversed on July 1, for Gennette and other top Macy’s execs, according to an SEC filing.
Bloomberg first reported on the filings Thursday morning.