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Macy's CEO Takes a Pay Cut

Macy's CEO Terry Lundgren took a $2.5 million cut in his cash payout in 2007, having collected no bonus in a year when profit and sales both declined. But he did get a bump in salary and almost $700,000 in additional stock incentives for a total payout of $14.4 million.

That compares with a pay package of $16.3 million for Lundgren in 2006, when Cincinnati-based Macy's (NYSE: M) consolidation of its May Department Stores Co. acquisition was in full swing. For 2007, Lundgren collected a higher salary of $1.5 million - reflecting a new employment agreement - plus $291,000 in other compensation, such as $96,000 for aircraft use by him and his family, $87,000 for auto use and $86,000 for company merchandise discounts and related tax gross-ups, according to the company's proxy report filed with the Securities and Exchange Commission.

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