Macy’s as my publicly traded company. Discovered that in 2021
Macy’s executives consist of Elisa Garcia (CLO), Jeff Gennette (CEO),
Adrian Mitchell (CFO), John Harper (COO), Tony Spring (EVP), and
Danielle Kirgan (Other Executive). The average base-pay for the
executives was $829,166,67. The average stock award for the
executives equaled $2,163,988.50. It’s not hard to see that for the
most part they are all making their real money off stock awards. The
only exception John Harper who received no stock awards. The
average employee salary was only $28,037, which is 3000% lower
than the executive salaries. In my personal opinion, I think the
compensation is ridiculous because I have been the “little worker bee”
making that small salary. It’s the average employees who end up
making the relationships with customers. However, as far as costs
and benefits with executive compensation, to an honest executive it
may motivate them to make decisions that will benefit the company
which in turn will benefit them. This is especially true if the awards
are given like bonuses. The downside to the company is that if that
find themselves needing to rase capital, they may need to actually sell
more stock rather than give it away as compensation. The auditor will
want to read the employment and compensation contracts when it
comes to executive compensation. The most effective procedures to
make sure that the financial statements have not been misstated
would be to test it’s completeness to make sure there are no missing
transactions, cutoff testing to make sure that transactions were
recorded in the correct period, occurrence testing to make sure that
the transactions actually occurred, and existence testing to make sure
that assets, such as inventory, actually exist.
Works Cited
Audit Procedures Definition
. (2022, August 3). Retrieved from
Accounting Tools: www.accountingtools.com/articles/audit-
procedures.html
Macy's Inc.
(n.d.). Retrieved from Salary.com:
salary.com/tools/executive-compensation-calculator/macys-inc-
executive-salaries?year=2021
