Lundgren Compensation Up 11% In 2014

Macy’s chairman and CEO Terry Lundgren earned about 11% more in compensation in 2014 than in the previous fiscal years, according to a proxy statement including executive pay and incentive figures.

In the fiscal year, Lundgren earned $1.6 million in salary but stock awards, incentives and other compensation boosted that total by a factor of 10. So, Lundgren’s total compensation came in at $16.5 million. Subtract changes in factors related to potential future payments, including pension value and nonqualified deferred compensation, and the total comes to $12.7 million versus $11.4 million in the fiscal year earlier, a gain of just over 11%.

All told, in the prior fiscal year, Lundgren’s salary was the same as it was for fiscal 2014, but his total compensation was a bit more than $12 million.

Total compensation in fiscal 2014 garnered by the next most highly paid executive was $4.3 million for Jeffrey Gennette, Macy’s president.

In 2014, Macy’s total sales advanced 0.6% to $28.11 billion, while comparable store sales gained 1.4%. Macy’s posted net income of $1.53 billion, or $4.22 per diluted share, for fiscal 2014, versus $1.49 billion, or $3.86 per diluted share, for the year earlier. Adjusted earnings per share, excluding one-time items, came in at $4.40, which, the company pointed out, represented a 10% gain in the metric.

However, total shareholder return gained 22.4% in the 2014 fiscal year versus 13.7% for the Standard & Poors 500.

According to the Macy’s proxy statement, in 2014, the company increased Lundgren’s targeted long-term incentive award opportunity by 6% as way of maintaining “his targeted total direct compensation relative to our executive compensation peer group and further ensure that increases in his compensation are directly linked to company longer-term operating and stock price performance.”