Posted on 02/04/2009 10:33:03 AM PST by Wolfie
Report: Macy's execs get bonuses day after cutting 7,000 jobs
NEW YORK, NY -- Macy's Inc. announced Monday that it would cut 7,000 jobs, almost 4 percent of its work force, and reduced its contributions to its employees' retirement funds and slash its dividend to preserve cash amid a severe pullback in consumer spending.
But a day after Macy’s executives announced the lay-offs, Cincinnati.com reports that top company officials received a final installment on $1.39 million in performance bonuses from 2004.
According to Cincinnati.com:
"The stock credit plan created in March 2004 brought five top executives “phantom stock units” or stock credits after a three-year holding period ended on Saturday, according to a Securities and Exchange Commission filing on Tuesday.
Half of the incentive was paid in February 2008 with the remaining amount paid Monday."
Department stores have been especially hard-hit by the poor economy as shoppers cut spending and turn to discount stores. Last month, Fresno, Calif.-based department store chain Gottschalks Inc. put itself up for sale and said it had filed to reorganize in a Chapter 11 bankruptcy. Dallas-based Neiman Marcus Group Inc. said this month that it was cutting about 375 jobs, or 3 percent of its work force.
Nothing wrong with that. Besides, it was the final installment from bonuses earned in 2004.
A company that lost money is giving bonuses;these people have divorced their compensation from the bottom line...why am I surprised...cut 7000 jobs too. Well, it is their right-private business-but I have a right not to shop there.
So, they aren’t selling as much and need fewer employees.
Deferred compensation for earnings in 2004? I guess since the economy went south, they’re not entitled to it anymore.
The media sure is working on ginning up support salary caps for all execs.
The proletariat must rize up and sieze from these people what is rightfully theirs! Then we will live in peace and harmony for ever and ever, in a land of plenty. ... *sigh*
At least Macy’s kept its promise. What a novel idea.
So???
If cutting 7,000 or 17,000 jobs resulted in the greatest shareholder value the did the right thing and deserve the bonuses. If anyone wants to participate in the decision making of a private sector institution like Macy’s all they have to do is buy stock and vote your shares.
Poor timing, but agreed. It was a bonus for performance in an earlier year.
This compensation was based upon the bottom line from 2004. It was earned then and the payment deferred until now.
These executive bonuses are chump change compared to the money scammed between Tom Daschel and his lobbist wife.
Off with their heads! Take over Macy’s!
I can’t wait to walk in a government Macy’s and see all those previously packed racks with all the latest styles turned into an empty store with one government issue sweater that no one wants hanging by itself.
Oh and 500 government employees to treat me rudely.
True and if I was one of those stock betters, I would bet they are going to sell even less in the future.
Perhaps the 7000 unneeded employees and the costs to keep them was dragging them down.
They simply streamlined. People don’t take the responsibilty and trouble to go into business to employ people, they go into business to make a profit. Otherwise why bother?
Sure, don’t shop there. Then they’ll hire plenty of people back. Take your business to a good government store.
Don’t we see the populist panic that is being fanned and which is threatening to destroy our economy?
Well, that may be true, but it certainly won’t make any difference will it? The economy is tanking.
Wrong, companies that do what makes sense and lay off workers in a recession increase their value. If the government comes in and forces them to rehire the 7000 people they will destroy the business.
Gawd, doncha just LUUUUUUVVVVVVVV wealth envy????
If it’s deferred compensation from 2004, why shouldn’t they be paid???
It’s THEIR money, NOT ours!!!
Tacky. Mean-spirited. But not illegal.
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