Macy’s Paid $9 Million In Bonuses To Executives After Thousands Of Job Cuts

Retail giant Macy’s Inc. (M) handed out bonuses totaling $9 million to its senior executives even after the company cut thousands of jobs.

Macy’s Chairman and Chief Executive Officer Jeff Gennette received restricted stock valued at $3.7 million on July 9, while five other executives, including chief legal officer Elisa Garcia and human resources chief Danielle Kirgan, received awards ranging from $350,000 to $3 million.

In late June, Macy’s said it planned to cut another 3,900 jobs, or about 3% of its total workforce, in order to reduce costs.

A spokesman of the company said that the department store chain delayed its annual equity grants to senior management due to the COVID-19 pandemic. They are usually awarded in March.

Even before the pandemic struck, in February, Macy’s planned to permanently close 125 stores and eliminate 2,000 corporate jobs.

Gennette, who temporarily took a pay cut during the pandemic, was restored to his full annual salary of $1.3 million on July 1.

Bloomberg reported that in the past Macy’s typically issued its top executives stock options and performance shares that were linked to certain targets and goals. However, the awards handed to Gennette and his five executives will be granted regardless of the company’s results.

Macy’s shares have plunged almost 60% this year.