Macy's Executives to Get Lucrative Exit Packages if Takeover Happens
February 03 2017 - 1:19PM
Dow Jones News
By Vipal Monga
Macy's Inc. executives are set to walk away with large severance
packages if the retailer ends up selling itself, according to
regulatory filings.
Chief Executive Terry Lundgren would receive more than $80
million if there is a change in control at the company, according
to the company's most recent proxy filing.
The package, valued as of Jan. 30, 2016, includes cash
severance, payments for signing a noncompete agreement, vested and
unvested stock options, and the value of his executive retirement
benefits. It also includes postretirement medical benefits and life
insurance.
The Wall Street Journal reported on Friday that Canada's
Hudson's Bay Co. approached Macy's about a takeover . Talks between
the companies are at early stages and could lead to arrangements
other than an outright acquisition. A deal for Macy's real estate,
which could be valued at roughly $14 billion, is also possible, the
Journal reported.
Mr. Lundgren became Macy's CEO in 2003 and chairman of the board
in 2004. The company's stock has risen more than 160% since he took
over as chief executive.
But the iconic retailer has struggled recently to compete
against internet retailers, and its stock has fallen more than 50%
from its peak in 2015. The company also said in January it would
cut more than 10,000 jobs and close dozens of stores.
The "change in control" payment for Karen Hoguet, who has been
chief financial officer since 1997, would be valued at more than
$15 million, while President Jeffrey Gennette's package would be
worth more than $12 million, according to the proxy filing.
Mr. Lundgren, who is in his mid-60s, said last year he would
step down as CEO this year but remain as chairman. He would be
replaced by Mr. Gennette.
(END) Dow Jones Newswires
February 03, 2017 13:04 ET (18:04 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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