Macy's Executives Get $9 Million in Bonuses Amid Job Cuts

Macy's board approved bonuses for senior managers, including $3.7 million to CEO Jeff Gennette, while the retailer cuts thousands of jobs.
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Macy's  (M) - Get Report recently awarded bonuses to senior management, including a $3.7 million stock award to the chief executive, as the retailer has been cutting thousands of jobs, a media report says. 

The total of $9 million of bonuses includes the July 9 payout to CEO Jeff Gennette, with five other executives receiving equity awards ranging from $350,000 to $3 million, Bloomberg reported.

Danielle Kirgan, Macy's chief transformation officer, was awarded $1.75 million in equity. 

Macy's execs received the bonuses just weeks after the company said it was eliminating 3,900 jobs amid the coronavirus outbreak and subsequent lockdown.

In March, Gennette said the Cincinnati department-store chain had to take "unusual measures to conserve cash." He said then that he would not be receiving his salary during the pandemic.

Gennette said in an email to staff that he would be receiving "no compensation" but did not specify how long that policy would be in place. 

Macy's executives usually receive their annual equity bonuses in mid-March, Bloomberg reported, but the company said in an emailed statement at the time that it would be delaying those allotments. 

On June 25, Macy's said it would cut nearly 4,000 jobs as part of a plan "to align our cost base with our anticipated lower sales." 

The job cuts are expected to generate $365 million in savings for the fiscal year, but will likely hurt second-quarter earnings by $180 million. 

Also in June, Macy's raised $4.5 billion in new financing after it said it expected to post better-than-expected fiscal-first-quarter results. The company was seeing a "gradual sales recovery," according to Gennette. 

At last check Macy's shares were 2.1% lower at $7.06.