New York City Macy's chairman, CEO and president Terry Lundgren got 13% less pay in 2009 than 2008, largely because his stock compensation fell, according to a regulatory filing Wednesday.
Lundgren's compensation package of $12.8 million included a salary of $1.5 million, same as the year before. And he received a performance-based cash bonus of $7 million as he led the mid-priced department store through the worst consumer spending downturn in decades. That was up dramatically from the $900,000 cash-performance bonus Lundgren he got in 2008.
Among the biggest changes at Cincinnati-based Macy's is that it now tailors its offerings to local markets so it can respond quicker to consumers' needs.
Lundgren received stock and option awards valued at $3.8 million on the day they were granted, down from $11.9 million in 2008.
Lundgren's overall compensation also included perks that totaled $498,556 during the fiscal year that ended Jan. 30. They included about $175,000 worth of personal use of the company jet, about $261,000 for the use of a car and driver and almost $21,000 for financial counseling.
The exercise price on his 2009 stock options was $8.76 a share, reflecting the company's stock price in March last year, when investors were favoring lower-price retailers. Macy's shares now trade around $21 so Lundgren's options already are well in the money.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases from the total companies report to the Securities and Exchange Commission.