Categories: Business

Macy’s says that managers will have to reimburse $ 600,000 in bonuses after scandal

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  • Some Macy leaders must reimburse the bonuses following an accounting scandal.
  • Macy overestimated one of its profits in 2023, which led to swollen bonuses.
  • Managers owe more than $ 600,000 from Macy, said the retailer.

Macy leaders will have to reimburse hundreds of thousands of dollars in bonuses following an accounting scandal, the department store firm announced on Tuesday.

The retailer overestimated one of his profit measures of $ 81 million in 2023, said the company in a file with the SEC. This metric has influenced how much the Macy executives were paid in bonuses the following year.

Consequently, some managers will have to reimburse $ 609,613 cumulative cash premiums that the company allocated to them until the end of 2024, according to the file.

The company has already recovered some of the bonus payments and had to receive the remaining $ 352,093 on April 1, the file said. Macy “will seek to recover the remaining amount of wrongly granted compensation” of managers during the company 2025 of the company, said the company in the DRA file.

A spokesperson for Macy refused to comment in response to questions from Business Insider, in particular which managers had to reimburse the bonuses.

Last fall, Macy delayed his report on the third quarter results after declaring that an employee had hidden more than $ 150 million in spending. The company said at the time that an employee who supervised expenses for the delivery of small packages was responsible for incorrect figures.

Accounting experts told BI that the problem was probably not only poor accounting, but the failure of several internal checks at Macy.

In December, Macy corrected some of her past financial figures, according to a file. The department store chain said that its net profit for 2023 was 57% lower than it initially declared, for example.

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William

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