CINCINNATI - Macy’s Inc. will welcome its newest president with more than $22 million in cash and stock awards, according to a securities filing Monday.
Hal Lawton, 43, was lured away from eBay Inc. to revamp Macy’s merchandising, product development and digital marketing strategies. In a filing with the U.S. Securities and Exchange Commission, Macy’s said Lawton will receive signing benefits of $16 million, including a $5.5 million cash bonus “in consideration of various items he may be required to repay or forfeit upon departure” from eBay.
The cash award is to be paid in two installments by next March and is subject to clawback provisions that could require Lawton to repay the bonus if he voluntarily leaves Macy’s within 24 months.
The pay package also includes $10.5 million in “sign on equity grants,” including stock options worth $4 million on the date of the grant and restricted share awards totaling $6.5 million.
Lawton will have a base salary of $1 million a year, with a bonus target of $1.25 million. The target is the amount Lawton would receive if Macy’s board decides he met all performance objectives, although he could receive more if he exceeds the board’s goals. Lawton’s target for stock awards in 2018 will be $4 million.
Excluding the signing bonus, Lawton has the potential to make $6.25 million in his first full year on the job. That’s $2.1 million more than Jeffrey Gennette made in 2016, his last full year as Macy’s president.
Pay issues aside, Macy’s has gotten positive feedback from its new hire.
“Mr. Lawton will bring a fresh perspective, one that is arguably long overdue,” analyst Charles Grom wrote to clients of Gordon Haskett Research Advisors. "While the move won't impact sales or profitability overnight, we think the addition could mark the beginning of a new chapter for Macy's."
Macy’s stock climbed more than 4 percent Tuesday to $20.42.