Macy's sets stock awards for execs based on performance

New York City Macy's will award five top officers, including chairman Terry Lundgren, a total of nearly 1.3 million shares if the retailer's stock can outperform the shares of most of its chief rivals during the next three years, Dow Jones reported.

Most of the 1.27 million shares would go to Lundgren, who would receive 666,666 shares under the "Founders Awards" program set up by the department store chain this week.

The Founders Awards are structured as performance-restricted stock units and vest over a period covering fiscal years 2009 to 2011, the report said.

Relative total shareholder return reflects how well Macy's common stock does in relation to the common stocks of a 10-company peer group -- including Wal-Mart Stores, J.C. Penney, Kohl's, Nordstrom and Sears Holdings -- assuming the reinvestment of dividends.

Macy's stock has to outperform two-thirds of the other retailers for the officers to receive their full awards. If the stock does better than between 50% and 66% of the group, the officers receive 75% of the awards. If the stock's total return does not beat half the group, no awards will be given.