The eagle-eyed Michelle Leder (of footnoted.org) dug up an interesting detail from a recent proxy filing by Macy’s (M) and posted it in her Dealbook column:
From Dealbook (NYT):
In the filing, the company (Macy’s) said it spent nearly $300,000 last year as part of the company’s “car program” to provide Terry Lundgren, the company’s chairman and chief executive, with a car and trained driver…more than triple the $86,956 that Macy’s spent in 2007 to provide Mr. Lundgren with the perk. What’s more, it is about 20 times what any other top Macy’s executive received for their car allowances.
“The driver is a trained security professional,” the proxy states. “This benefit is to ensure the personal safety of Mr. Lundgren, who maintains a significant public role as the leader of Macy’s.
Oh yes, in the cutthroat world of department stores, having a heat-packing security pro as your CEO’s driver is a must. I’ve done some additional homework into this phenomenon and here’s what the other department store chains are spending to protect the brass:
|Executive||Company||Security Perk||Cost Per Year|
|Stephen Sadove||Saks 5th Ave||Team of Ninjas On Call, 24 Hours a Day||$250k/ year plus throwing stars|
|William Dillard||Dillards||The Volunteer-Only Dill-Army, 6 Battalions Strong||$600k/month for ammo and supplies|
|Kevin Mansell||Kohl’s||Dragon-Filled Moat and Drawbridge Surrounding Home||$200k/year for drawbridge operator and dragon food|
|Myron Ullman III||J.C. Penney||Armor-Plated Hummer with Side-Mounted 50 Caliber Guns||Lease payments $5000 a month, fully-loaded, extra cupholder|
|W. Bruce Johnson||Sears||Anti-Lampert Defense Shield to Keep Hedge Fund Managers Away From C-Suite/ Decision-Making||$1 million per week|
Money well spent for shareholders who wish to keep their exec’s safe from the rampant violence plaguing the big-box retailing industry.
Full Story: Putting a Price on a Car and Driver (NYT)
Check Out: footnoted.org for more of Michelle Leder’s revelations
Full Disclosure: I currently manage accounts that are long SHLD