$3.3 Million Bonus for Lundgren
Cincinnati, Federated Department Stores has given chief executive Terry J. Lundgren a $3.3 million bonus for his 2004 performance. His annual base compensation, not including stock options, is $1.3 million.
Federated’s board approved the bonus on Friday and it was reported in the company’s filing Tuesday with the Securities and Exchange Commission. The board also approved bonuses for 2004 ranging between $1 million and $1.3 million for five other Federated executives.
Lundgren, 52, became president of Federated in 1997, added the title of COO in 2002 and was appointed CEO in 2003.
Management Shakeup Begins at Sears
Hoffman Estates, Ill., Four Sears, Roebuck and Co. executives were terminated, according to a report in the Chicago Sun-Times. The shakeup comes a week after Kmart’s $12.3 billion takeover of Sears was approved.
The terminated employees include:
• Bill Bass, senior VP of e-commerce at Lands’ End and the head of Sears’ online and catalog operations. He will be replaced by Kmart’s Chris Shimojima, who becomes general manager of online and catalog sales.
• Gary Kelly, Sears CIO. Kmart’s Karen Austin will replace him as CIO.
• Bob O’Leary, head of public relations and government affairs. He will be replaced by Sears’ Edgar “Ted” McDougal.
• Greg Lee, head of human resources. He will be replaced by Sears’ Bob Luse.
In addition to these executive changes, Sears executive VP of store operations William White III will retire. Also, Catherine David, who leads Sears’ Great Indoors concept, will take additional responsibility for the Sears Essentials and Sears Grand formats, and Rob Lynch will become general manager of the Orchard Supply hardware chain.