Saturday, May 20, 2000
Shareholders approve doubling of maximum incentives for execs
By Lisa Biank Fasig
The Cincinnati Enquirer
ATLANTA — Shareholders of Federated Department Stores approved an amended incentive program that would double the maximum annual incentive award for executives — capping it at $4 million.
The current bonus plan, adopted in 1992, awards incentives of up to $2 million based on performance. According to Federated's proxy, chief executive and chairman James Zimmerman received a $1.975 million bonus in fiscal 1999.
It is the first time since 1992 that Federated's board has asked for a bonus increase. More than 92 percent of the votes cast — and 77.77 percent of the shares entitled to vote — approved the amendment, which was adopted.
Mr. Zimmerman's bonus in 1999 was awarded on top of an annual salary of $1.25 million. He also received more than $4 million in restricted stock awards and roughly $1.1 million in other compensation.
Terry Lundgren, Federated's president and chief merchandising officer, earned a salary of $1 million plus a bonus of $1.12 million and almost $700,000 in other compensation.
Federated shareholders also approved a proposal to increase by 10 million the number of common shares available under the company's 1995 Executive Equity Incentive Plan. As of April 1, about 4.8 million common shares remained available.
Shareholders also approved for a second year a proposal by celebrity shareholder Evelyn Y. Davis, who wants to change the election of Federated directors to an annual basis.
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