Skip to comments.Report: Macy's execs get bonuses day after cutting 7,000 jobs
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 Macys 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.
I didn’t say the stockholder were upset...I think when a CEO takes a bonus during bad times, lays off 7000 people the same week, he is about to take the money and run. I advised Stockholders to sell and quickly or they will lose their investment when this company goes into chapter 11 or even chapter 7 liquidation.
The CEO did what he wanted to...as I have stated before...it his right. However, I suspect this company is headed for trouble and would not buy stock in it. Personally, I am offended by this behavior so I won’t shop there...how is this socialist?
I understand fiduciary duties...if the economy is seriously tanking and 7000 must be laid off...don’t you think it might be a good idea to delay the bonus and put your company above your personal compensation?
As a matter of fact, my company just announced that their senior VP of accounting has resigned to “spend more time with family”. It seems that this individual was cooking the books for about 3 years and opened the company up to a number of lawsuits due to having to restate earnings reports going back 3 years.
This individual knew full well that the accounting reports presented to the board and the stockholders was what they wanted to see - positive and continuous growth.
But, at what cost?? Business is down . . . . way down and has been declining since news of the earnings restatement was released last year. We have experienced two rounds of layoffs and expect the doors to close within the next couple of years.
And, we used to be a leader in our industry.
The board and the stockholders knew what was going on, they just wanted culpable deniability.
$1.4 million isn’t going to kill the company. These execs are employees of Macy’s, so it wouldn’t make much sense to them to give up money to which they’re entitled for the sake of largely outside shareholders.
If they’re not taking taxpayer money I don’t care how they handle their business...
Exactly. And it’s going to get much much worse. I’m also noticing more and more FReepers buying into this crap. That tells me the masses are going to be easy to manipulate with the eeeeevil corporations card married to the class envy card.
Who is telling you this?
So what? Did they take a goobermint handout? No? None of my business.
You do realize Macy’s will be closing some stores that are not doing well. You expect them to send their employees to a job bank the way the U.S autoworkers have done? Some of you expect them to keep 7,000 employees even though there are not enough customers to justify keeping that many employees because they doled out some money to their executives who, I would think, have had to bust their butt and put in long hours to get to be in upper management. I wish you all would demand of our politicians what you demand of the private sector. How about telling congress no pay hikes, no cars at taxpayers expense, tell Pelosi she has to return her jet.
I have been shaking my head all day long on this topic.
I understand all that...however, if times are tough and they are...Macy’s execs should not be getting bonuses...it smacks of bad judgment...I would not consider buying a stock after I have been basically wiped out by these kinds of CEO’s. I can’t trust them to run their companies properly...they don’t seem to care if the companies they run do well or not-the bonuses continue-good times and bad times...if you drive your company into the ground...you lose very little. No way to run a business. I would not be surprised if Macy’s was in bankruptcy by the end of the years and this is a take the money and leave strategy.
Telling me what? I have no idea what you mean...
“They dont care because they will leave before the end taking millions with them no doubt...these guys look after themselves and not their companies.”
They don’t care? How many? Do you know this for a fact?
The bonuses are based on performance and they’re still making a profit. Comnpanies are always looking to streamline and constantly looking at underperforming areas where business activity is not meeting their goals. Do you want them to stop paying bonuses every time people are laid off? For retailers who are constantly closing stores, that may mean never paying the execs a bonus. And paying bonuses to execs is part of their compensation and it’s based on how well they did throughout the year. They’re the ones who put in the long hours, they’re the ones who go home and probably still bring home their work. And frankly, it’s their business how much and whether they want to pay a bonus.
As I said, the media is out to create an anti business environment and it seems they’re winning.
The Fox new reported described the sales figures of Macy’s as ‘dismal’...it they want to receive bonuses instead of looking our for the financial well-being of their company...fine they are not bailed out so as a private company they can do as they please...just don’t think it is a good idea.
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