Macy’s Inc. (NYSE:M) gave out around $9 million in restricted stock to its top executives just days after the company laid off almost 25% of its corporate employees.
Macy’s executives awarded restricted stock
According to SEC filings, the CEO of the struggling departmental store chain, Jeff Gennette, was given restricted stock of around $3.7 million on July 9, 2020. Equally, another five top executives that include human resources head Danielle Kirgan and legal chief Elisa Gracia also received awards that ranged from $350,000 to $3 million.
In an email, a Macy’s representative indicated that due to the COVID-19 pandemic, the company had to delay the timing of the annual equity grants to the board and management this year. The representative indicated that the retailer will offer a comprehensive description of the 2020 compensation plan in the 2021 proxy filing.
Early this year before the coronavirus outbreak, the company has announced that it will permanently shut 125 of its stores in the next three years as it laid off around 2,000 of its corporate employees. In June, the retailer announced that it would slash another 3,900 jobs around 3% of its workforce as it sought to cut costs. Macy’s has also indicated that it plans to close more stores sooner than planned because of the impact of loss in revenue it has felt due to COVID-19 pandemic.
Macy’s reverse executives’ salary reductions
Usually, the company executives receive annual equity awards around mid-march but the company delayed the allotment this year. It has not explained why it delayed the allotment but indicated that they will explain that in 2021’s proxy. Gennette had taken a pay cut due to the p4eandemic, but the board has reversed the salary reduction, which means that the CEO will now earn his $1.3 million per year salary.
Over the past, the company has been giving the executives performance shares and stock options based on goals. But the recently awarded restricted stock to the executives was given despite the company’s dismal performance.