Macy’s is demanding its executives return bonuses they obtained final 12 months that have been linked to an accounting scandal attributable to a rogue worker, the corporate mentioned in a submitting on Monday.
The division retailer overpaid an undisclosed variety 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 staff obtained their bonuses a 12 months in the past and the retailer has already recovered $257,520 of the funds, in response to the securities submitting.
The corporate 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 Trade Fee submitting.
Macy’s declined to remark.
Macy’s didn’t determine the executives who obtained the funds.
In December, Macy’s mentioned its investigation discovered {that a} rogue worker hid the bills to cowl up a bookkeeping mistake and wasn’t motivated by private or monetary achieve.
Information of the accounting coverup in late November delayed the corporate’s quarterly earnings report and despatched its shares tumbling.
The worker, who was not recognized, was fired.
The ex-employee hid supply bills over a three-year interval, deliberately making “erroneous accounting entries and [falsifying] underlying documentation, to understate delivery expenses,” the corporate mentioned 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 name after the fraud was found.
The clawback comes as Macy’s is closing 150 underperforming shops by 2027. Final month, its steerage for gross sales and earnings for the 12 months fell wanting Wall Road’s expectations as the most important division retailer on the earth pointed to inflation and tariff uncertainty.
