Macy’s Inc. is clawing back more than $600,000 in cash bonuses from exec
utives after an accounting scandal led to inflated pay.
The department-store operator tied executives’ cash bonuses to an earn
ings metric that turned out to be overstated by around $81 million in 2023, Macy’s said
in a securities filing on Tuesday evening.
That meant Macy’s overpaid executives by $609,613 as of the end of 2024
, the company said. Some of that has already been clawed back, so the outstan
ding amount stood at $352,093 as of April 1, it added.
The company’s compensation committee said it “will seek to recover th
e remaining amount of the erroneously awarded compensation” from executives. Macy’s didn’t name the people whose bonuse
s will be affected. A spokesperson declined to comment.
Macy’s also said Tuesday its chief financial officer was leaving. The com
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pany said it was replacing him with his counterpart at Capri Holdings Ltd., Thomas
. Edwards, and said the move was part of its plan to return to long-term, profitable growth.
Under US Securities and Exchange Commission rules, public companies are required to assess whether they need to revoke c
orporate bonuses if they uncover accounting errors that miscalculated past profits.
In November, Macy’s delayed an earnings release and then issued a lower prof
it outlook after an investigation found an employee intentionally hid more than $150 million in delivery expenses from the fourth
quarter of 2021 through the third quarter of 2024. The probe didn’t uncover evidence of missing cash or unpaid vendors and instea
d pointed to accounting errors by the former employee, who also falsified documents to hide the problem, according to the company.
Bloomberg’s Jeannette Neumann co-authored this report.
