Macy's Executives to Get Lucrative Exit Packages if Takeover Happens

Macy's Inc. executives are set to walk away with large severance packages if the retailer ends up selling itself, according to regulatory filings.

Chief Executive Terry Lundgren would receive more than $80 million if there is a change in control at the company, according to the company's most recent proxy filing.

The package, valued as of Jan. 30, 2016, includes cash severance, payments for signing a noncompete agreement, vested and unvested stock options, and the value of his executive retirement benefits. It also includes postretirement medical benefits and life insurance.

The Wall Street Journal reported on Friday that Canada's Hudson's Bay Co. approached Macy's about a takeover . Talks between the companies are at early stages and could lead to arrangements other than an outright acquisition. A deal for Macy's real estate, which could be valued at roughly $14 billion, is also possible, the Journal reported.

Mr. Lundgren became Macy's CEO in 2003 and chairman of the board in 2004. The company's stock has risen more than 160% since he took over as chief executive.

But the iconic retailer has struggled recently to compete against internet retailers, and its stock has fallen more than 50% from its peak in 2015. The company also said in January it would cut more than 10,000 jobs and close dozens of stores.

The "change in control" payment for Karen Hoguet, who has been chief financial officer since 1997, would be valued at more than $15 million, while President Jeffrey Gennette's package would be worth more than $12 million, according to the proxy filing.

Mr. Lundgren, who is in his mid-60s, said last year he would step down as CEO this year but remain as chairman. He would be replaced by Mr. Gennette.