Macy’s is struggling since COVID-19 crisis started and M stock price is not recovering.
Back in March Macy’s decided to furlough 100,000 employees but today announced that one new employee is getting the job. That new employee is Adrian V. Mitchell, currently a Managing Director and Partner in the DigitalBCG, and he will take over the chair from interim Macy’s CFO Felicia Williams.
According to the SEC filing reviewed by Idaho Reporter, Macy’s Compensation and Management Development (CMD) Committee approved the following compensation arrangements for Mr. Mitchell:
•Annual base salary of $800,000; annual target incentive opportunity of 100% of base salary under the Senior Executive Incentive Compensation Plan; and a target annual equity grant with a grant date fair value of $1,415,000 under the 2018 Equity and Incentive Compensation Plan.
•Sign-on bonus of $500,000 payable upon hire, subject to a repayment agreement. Mr. Mitchell must repay 100% of the sign-on bonus if he voluntarily terminates employment within the first 24 months of hire date.
•Sign-on equity grant under the Plan of RSUs with a grant date fair value of $1,000,000 vesting 100% on the third anniversary of the grant date.
•Participation in the Company’s Senior Executive Severance Plan, Change in Control Plan, and relocation program with an additional $45,000 relocation allowance reflecting anticipated length of the relocation process due to COVID-19.
OK, that seems like a lot of money, and even though I do understand that big companies require big decisions and experienced executives, some voices are wondering why Felicia Williams is not CFO.
Williams is seasoned and knows the ins-and-outs of Macy’s. I know, I worked for the company and it takes time until you are part of the culture and know your way around, and who to ask for guidancesource
Instead, Williams will be joining the “CEO Action for Racial Equity as a Macy’s, Inc. Fellow. She will play a key role in the CEO Action commitment to identify, develop and promote scalable and sustainable policies and corporate best practices to address systemic racism and social injustice, and improve societal well-being. “