Terry has a contract and it ends in 2011

Last edited by friendofmacy on Wed Feb 13, 2008 11:19 pm; edited 1 time in total

From Macy's 2007 Form 8-K, for those of you interested here is the link:

http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?SessionID=mNjCjuNdQ_9FAJ5&ID=5024186

8, 2007, Federated Department Stores, Inc. (the "Company") and Terry J. Lundgren, Chairman, President and Chief Executive Officer, entered into an Employment Agreement (the "Agreement"), to be effective as of March 1, 2007.

The term of the Agreement expires on February 28, 2011, unless such term is extended by agreement of the parties. In consideration for his services during the term of the Agreement, the Company has agreed to provide the following compensation to Mr. Lundgren: an annual base salary of not less than the greater of his current base salary of $1,500,000 or the base salary approved by the Board of Directors or its delegate, and an annual bonus payable (if any) under the terms of the Company's 1992 Incentive Bonus Plan (as such may be amended from time to time) based on performance goals established for the senior executives of the Employer on an annual basis by the Board of Directors or a Committee thereof, with the amount of bonus equal to a sliding percent of Mr. Lundgren's annual salary in effect as of the last day of the performance period based on performance against the targeted annual goals. If the Company notifies Mr. Lundgren that his services will no longer be required during the term (other than because of his disability) or if Mr. Lundgren terminates the agreement for good reason, Mr. Lundgren will be entitled to receive his base compensation and target bonus for the remainder of the term of the Agreement. Mr. Lundgren has also agreed to certain non-competition, confidentiality and non-solicitation covenants under the Agreement.[/b]

Posted: Wed Feb 13, 2008 10:19 pm Post subject:

OK, through the legal mumbo jumbo -

Lundgren has a contract to stay with Macy's till 2011. He can't leave the company until then to take another position.

In other words if he agreed to take the head position at Nordstrom - Macy's could sue him for everything and then some. This agreement is probably valid till 2012.

So this means:

A. EX won't be back in the same situation he was previously in until at least 2012.
B. Macy's is stuck with a CEO making 1.5 million + bonuses per year and 40% discount at both Macy's and Bloomingdale's.
C. Because Lundgren is a moron Macy's will be stuck with him till 2011 at the earliest. Unless they fire him - which is unlikely that would cost them 1.5 x 3 + AVG bonus and incentive x 3.

In other words even if Macy's wanted to get rid of him, they couldn't afford to!

Joined: 20 Jan 2008 Posts: 12

That's the Macy's way.Doesn't it suck?
By the way where is Money?Guess he doesn't want to talk to us anymore(BOO WHO!!!!!!)[/b]

Posted: Wed Feb 13, 2008 10:58 pm Post subject:

He never has shown up! He mentioned getting married to Macy's. I think he may be in divorce court by now. Wink

You know how that divorce will go! Macy's lawyers are going to get him for everything and then after he is standing naked outside a NYC court house, poor Money will have to find a job at Toys R Us to start paying the alimony!

Posted: Thu Feb 14, 2008 12:39 am Post subject:

They must have run off together!
Terry makes 7.3 million a year, after you add in all of his bonuses. Not only does he receive a 40% discount, but all of his sales tax is paid by Macy's, which I believe equaled 40 thousand last year. Man, you would have to buy ALOT of stuff at 40% off to rack up 40 thousand in sales tax!
Question: why does someone that makes 7 million need a bigger discount that people that make $7.00/hr?
Just curious.

Posted: Thu Feb 14, 2008 1:38 am Post subject:

The companies response would be that:

"Mr. Lundgren has worked his way through the ranks of various retail groups. In his pursuits of excellence, Mr. Lundgren has managed to land the top executive spot within our company. To reward him for his hard work and dedicated efforts of leading a company with nearly 900 stores, we offer him a generous discount of 40%"

"The company however only offers our grunts that work on the sales floor for $5.75 an hour a 20% discount when we feel generous. We don't have to have the grunts, we have macys.com for your shopping pleasures."

Posted: Thu Feb 14, 2008 2:16 am Post subject:

Posted: Thu Feb 14, 2008 2:18 am Post subject:

The discounts are unfair. For instance at Lowe's I got a 10% discount. That was a .025 discount after taxes. However you go to Oregon where there is no state sales tax and you got a whole 10% which was the same as 20% in Tennessee.

At the Home Depot there was NO discount, you paid full price like it or not.

Joined: 03 Jan 2008 Posts: 1217 Location: ole wrap stand

if we are lucky we get a mere 25 cent raise per hour..and he get this and plus..there is something fishy..in Macys land..for sure

Posted: Thu Feb 14, 2008 4:51 am Post subject:

25 cents? I got an 11 cent raise at Lowe's. That was it.

At Applebee's they gave me a 50 cent raise one time! I was so excited till payday, when I got my check I realized that they took .50 and owed me $1 an hour.

Some people need to open their purse strings and pay some money!

Posted: Thu Feb 14, 2008 11:21 pm Post subject:

The lowest I ever got was 20 cents, and I was very insulted, and I let the manager giving me the review know. I don't really expect to get a raise this year, which is even more insulting.

Posted: Fri Feb 15, 2008 2:35 am Post subject:

It was insulting. I had been loyal to the company, I had only called out once - and that was when my grand father passed away. I was always on time and never complained like the other people did. I thought for people like me who were loyal hard workers a dollar was not a lot to ask for. But 11 cents? HMPH!

Joined: 03 Jan 2008 Posts: 1217 Location: ole wrap stand

MANY MANY MOONS AGO...and believe me this was many..lol.. I remember working AT GIMBELS..yes you all are reading this..they gave 2 1/2 cent raise..in January and June vwg Doh!

hence they were too cheap just give you the damn nickel for the year..gotta save the big bucks..rofl..

Posted: Fri Feb 15, 2008 10:43 pm Post subject:

What is HMPH?

Joined: 03 Jan 2008 Posts: 1217 Location: ole wrap stand

YOU GOT me on that one.. Doh!

Posted: Sat Feb 16, 2008 6:04 am Post subject:

HMPH! You know the sound that you make when you get fed up. It sounds more HUMPHHH!!!!!

Posted: Sat Feb 16, 2008 12:59 pm Post subject:

OHHhhhhhh....I thought it was one of those things that Polli says, like ROFL!
I was trying and trying to figure it out before asking, but I gave up.
HMPH!

Posted: Sun Feb 17, 2008 2:11 am Post subject:

You Got it MAYcylady! Smile

Joined: 03 Jan 2008 Posts: 1217 Location: ole wrap stand

your never too old to learn new things..vwg

Posted: Sun Feb 17, 2008 3:21 am Post subject:

I love that commercial where everyone in the family is texting, and then they're like "GRANDMA???". It's hillarious.

Posted: Sun Feb 17, 2008 4:41 am Post subject:

Ha!

My grandmother wouldn't know a text message if it bit her.

Posted: Tue Feb 19, 2008 2:14 am Post subject:

well at least you guys get raises.....there are no raises for the sorry employees in FL

Posted: Tue Feb 19, 2008 2:37 am Post subject:

Posted: Tue Feb 19, 2008 3:04 am Post subject:

It is pretty funny.

Joined: 03 Jan 2008 Posts: 1217 Location: ole wrap stand

well..I sure know how to text..and Iam one up beat of a grandma..rofl.. Very Happy

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