Macy’s “Gift of Giving” is the store’s holiday campaign and, in a manner of speaking, an approach to compensating its hard-working executives.
Chairman and chief executive officer Tony Spring, who has been leading Macy’s Inc.’s “Bold New Chapter” three-year strategy centered on streamlinings and pursuing opportunities for growth, had a total compensation package last year valued at $16,452,108, including $1.3 million in salary, $12 million plus in stock awards, and $2.6 million in non-equity incentives. In 2023, Spring’s compensation was valued at $5,777,959, including $975,000 in salary, $3,871,353 in stock awards and $781,091 in incentives.
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Adrian Mitchell, the outgoing chief financial officer and chief operating officer who has essentially served as second-in-command, took home total compensation of $5,500,023, including $950,000 in salary, $3,238,496 in stock awards and $1,288,400 in incentives. In 2023, Mitchell’s compensation package was worth $7,887, 403, including $933,333 in salary, $6,193,837 in stock awards and $742,036 from incentives. Mitchell is being succeeded by Thomas J. Edwards in June.
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Olivier Bron, Bloomingdale’s CEO, had a 2024 compensation package valued at $2,589,734, including a salary of $775,000, stock awards of $1,77,639 and incentives of $632,574. Bron joined Bloomingdale’s in November 2023.
The executives compensation packages include stock options, the full value of which might never be realized due to fluctuations in stock prices and vesting schedules.
While sale trends were not great last year overall, the company has been operating more profitably and has a healthy balance sheet. In fiscal year 2024, net sales decreased by 3.5 percent to $22.3 billion, with comparable sales down 0.9 percent on an owned-plus-licensed-plus-marketplace basis. But net income rose to $582 million from $45 million in 2023, while operating income tripled to $909 million from $301 million in 2023.
The company is projecting 2025 sales of between $21 billion and $21.4 billion or about $1 billion less than the $22.3 billion generated in 2024. Comparable sales are projected down 2 percent to 0.5 percent.
Macy’s Bold New Chapter strategy involves investing in “go-forward” departments with increased staffing in high-traffic areas such as women’s shoes and fitting room areas, fresher products and improved visuals. The retailer previously indicated that due to what it saw as a positive consumer response to the first 50 Macy’s locations getting the most attention, an additional 75 Macy’s locations in fiscal 2025 will receive similar increased investments in assortments and service. Macy’s has designated 350 go-forward department stores, and is closing about 150 department stores.
The strategy also centers around “accelerating and differentiating luxury” and striving for organic growth and store expansion at both Bloomingdale’s and Bluemercury. Three Bloomie’s stores including the first women’s-only Bloomie’s location opened last year. Bloomie’s are scaled down, specialized versions of the full-line Bloomingdale’s department stores.