Immediately following the detection of their numerous accounting errors, Macy’s fired the accused employee. Macy’s chairman and CEO Tony Spring addressed the situation claiming, “We’ve concluded our investigation and are strengthening our existing controls and implementing additional changes designed to prevent this from happening again and demonstrate our strong commitment to corporate governance”. It was clear that Spring wanted the public to move on from the dilemma and focus on the future.
The company was also forced to delay their Q3 earnings report due to the substantial bookkeeping errors. On top of this, Macy’s was forced to clawback their inflated bonuses rewarded to a number of executives at the company which is still ongoing.
Above you can see an example of how Macy’s was forced to revise all of their financial statements to account for the fraud.
I believe that Macy’s handled this situation the right way. As such a big company, it would be disturbing if they mishandled a situation of such great importance and impact on their public image.
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