Federated Chief to Resign After Acquisition
Howard Goldfeder will resign as chairman and chief executive of Federated Department Stores once a takeover of the company by Canada’s Campeau Corp. is completed in about a month.
Goldfeder, 62, will collect a severance package totaling $3.06 million when he leaves, Federated officials said.
Campeau succeeded earlier this month in beating out R. H. Macy & Co. for control of Federated after an 11-week battle. Campeau has estimated the total cost of the deal at $8.8 billion, including financing charges.
Goldfeder’s package is based on three years’ salary plus 20% of one year’s pay. He will also receive as much as $4 million in deferred compensation.
Campeau’s tender offer expired Friday and the acquisition is expected to be completed within 30 days, a Campeau spokeswoman said.
Federated holdings include Bloomingdale’s and the Ralphs Grocery chain. Campeau will sell Macy’s two of Federated’s California operations, Bullock’s/Bullocks Wilshire and I. Magnin.
Campeau Chairman Robert Campeau has said that he expects to sell half of Federated’s chains to help pay for the deal.
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