Terry Lundgren’s Compensation Up 37.1% in 2014

Terry Lundgren saw his total compensation as Macy’s Inc.’s chairman and chief executive officer increase 37.1 percent to $16.5 million, and its cash portion grow by more than 20 percent, in 2014. According to the company’s definitive proxy, released to the Securities and Exchange Commission Wednesday, Lundgren earned nearly $4.5 million more than the $12 million reported in the prior year as his cash bonus and stock and option awards increased. His salary was unchanged at $1.6 million, but his cash bonus, or non-equity incentive plan compensation, rose 38.2 percent, to $2.6 million from $1.9 million, 59.8 percent above his base salary. Both the company’s 2014 adjusted earnings before interest and tax of $2.89 billion and sales of $28.55 billion landed between the threshold and target amounts set by the compensation and management development committee of the board, while cash flow of $1.93 billion qualified as outstanding. Lundgren’s stock and option awards totaled $8.3 million, up 5.5 percent from the $7.9 million granted in 2013. These awards reflect the company’s performance over three years in adjusted earnings before interest, taxes, depreciation and amortization; adjusted EBITDA margin; average return on invested capital, and total shareholder return when measured against Macy’s peer group. Although the SEC

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