Macy’s clawing back execs’ bonuses linked to – Business News
Macy’s is demanding its executives return bonuses they acquired final 12 months that had been linked to an accounting scandal brought on by a rogue worker, the company stated in a submitting on Monday.
The division store overpaid an undisclosed quantity of executives by $609,613 earlier than it found that an worker had hid as a lot as $154 million in supply bills over the previous few years – a sum that artificially inflated the executives’ pay.
The workers acquired their bonuses a 12 months in the past and the retailer has already recovered $257,520 of the funds, in accordance to the securities submitting.
Macy’s stated it overpaid its executives by $609,613 final 12 months and it needs the money back. Erik Pendzich/Shutterstock
The company continues to be looking for to “recover the remaining amount [$352,093] of the erroneously awarded compensation from the covered officers in accordance with the clawback policy during fiscal 2025,” in accordance a Securities Exchange Commission submitting.
Macy’s declined to remark.
Macy’s didn’t determine the executives who acquired the funds.
In December, Macy’s stated its investigation discovered that a rogue worker hid the bills to cowl up a bookkeeping mistake and wasn’t motivated by personal or financial gain.
News of the accounting coverup in late November delayed the company’s quarterly earnings report and despatched its shares tumbling.
The worker, who was not recognized, was fired.
Macy’s CEO stated the rogue worker “acted alone.” Paul Martinka
The ex-employee hid supply bills over a three-year period, deliberately making “erroneous accounting entries and [falsifying] underlying documentation, to understate delivery expenses,” the company stated final 12 months.
The worker “acted alone and did not pursue these acts for personal gains,” Macy’s CEO Tony Spring instructed analysts on a convention call after the fraud was found.
The clawback comes as Macy’s is closing 150 underperforming shops by 2027. Last month, its steerage for gross sales and earnings for the 12 months fell short of Wall Street’s expectations as the biggest division store on the planet pointed to inflation and tariff uncertainty.
