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.
My irritation is that we are being led down a path we are not going to be very happy with. Emotions take over and we fail to see the stitches on the fastball. One is being lobbed at us right now.
I reject this demonization and will continue to reject it. I would much rather put the blame where it belongs, at the feet of government manipulation.
Perhaps we can help them with that same formula until they don't need any stores, administrative, or executive help either?
How do you know for sure those employees were “underperforming”? Since you are the “expert”...please share...
That is always a possibility. The current administration may be a death warrant for many businesses.
Seems like the bailout trough is where many are headed.
Hmm? Wonder why?
My demonization is for bad decision making from executives...and we end up paying for it by subsidizing their fired employees...or even worse....their “bailouts”
I want to save capitalism from the encroaching Socialism of the Democrats....but if those running companies continue to make bad decisions...we will lose Capitalism
Excellent post and good points....yes eventually bad companies will fail....and lets hope they do not ask for bailouts from Uncle Sam.
Federated Stores have a history of bad performance....a few of their former holdings have tanked in the past
You keep talking about bad decisions by Macy’s management. What decisions are those? Layoffs in response to slower sales are usually considered a necessary decision.
Their job is to provide a service or a good at a profit.
If you do not want their services or goods that is your
business. If you want it to be your business. Buy a majority
share in their business and fix it yourself. Or build a
business model that doesn’t rely on profit and employs
millions of people no matter what their performance and put
them out of business. The last one is called the socialism.
Funny how rarely it is reported the number of times an employee lays off a company.
Right to work cuts both ways. Last time I changed jobs I did not have buy out of my employment contract, or hope that my employer would approve my plans.
I just gave notice and left.
It is the way I prefer to work. Conscription is not my bag of tea.
— lates
— jrawk
It may turn out it wasn't the best decision, but Macy's executives were the ones in the best position to make the decision.
WRONG!!! (Back at ya!)
From the article:
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.
-snip -
Half of the incentive was paid in February 2008 with the remaining amount paid Monday."
So, it's STILL their money and the stockholders should already have had the opportunity to approve the bonus plan. The article is playing a wealth envy ploy against mean old corporate executives.
You really are mixed up. I know you mean well, but we are being manipulated. Everyone is looking out for themselves because they can see what is coming.
Can you see it, can you feel it? They no longer have to make bad decisions, this article proves it. Any decision they make will be fodder for demonizing, even if it is one that is best for their business.
Next the Obama admin takes over retail. Shades of Chavez.
Great points. Unfortunately too many on here do not understand the real world...that there have been numerous bad decisions from those running our companies....and will not take cuts themselves as they run the companies into the ground...they have no company loyalty compared to the non-management employees
And God Bless your husband for serving our country. He is the reason why we are still free to post on forums like this. Although I am an Army vet....a big Semper Fi to your hubby
Perhaps we should also mention that if everyone who hated corporate America went to Macy’s and bought a pair of pants and a shirt, these folks might not be laid off. It is the consumer’s fault that these folks don’t have jobs.
Oh I am not being manipulated....it makes no sense for a company to compensate one group of employees while letting another group go.
I can see executives for their own personal gain looking out for themselves....but they show no loyalty to their company or really have any concern for its future
Exactly...by manipulating taxes they can even make a profitable business unprofitable.
Thanks for the lecture. Here’s your two pennies. Now move on.
To be fair he I really did not see that he suggested this. He just proposed two options for lowering expenses. He also suggested a lot of workers would opt for the second lower their wages. But this is hindsite thinking on the employees part conviently forgetting the day they were hired.
They have forgotten the likely nature of the employment contract the they accepted. Rarely does it have a provision for lowering wages. Rarely would an employee accept such. So the lowering of wages is often legally pre-empted by the employee upong hiring. Especially in retail.
What is not reported in these financial reports is the opportunity in retail for people to re-hire at lower wages. Often this is done laterally, fired from Macy’s get lower pay at Dilliards vice versa. Retail employee’s are a bit of a fungible commodity after all.
Just thoughts.
— lates
— jrawk
Execs are not going to defer something they TRULY earned for 5 years.
If you believe otherwise, I have a bridge to sell you.
I won’t argue the point any longer. You will find out how wrong continuing down this path is.
The costs associated with employing those 7000 people continually in a bad economy is far more than the bonuses these people were promised a few years ago.
If you want capitalism to be around, think your stance again.
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