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re: Macys' employee hid $150 million in expenses, CFO is LSU undergrad-who knows him?
Posted on 11/25/24 at 9:52 am to secfballfan
Posted on 11/25/24 at 9:52 am to secfballfan
How the hell do you hide $1mil per week for 3 years? Man is that ever "cooking the books"
This post was edited on 11/25/24 at 11:09 am
0
Posted on 11/25/24 at 9:55 am to secfballfan
quote:
of course he still has his job!
Except for the part where he doesn’t.
Posted on 11/25/24 at 9:56 am to stout
quote:
There was an article the other day speculating that a ton of businesses have "hid" expenses like this through creative accounting since Covid and they can no longer hide it so it will all be coming out over the next several earnings reports.
I can believe this. This is just a microcosm of our government. All smoke and mirrors and fake numbers. Trump is like the new CEO coming on board only to find that all the books have been cooked.
Posted on 11/25/24 at 9:59 am to AlextheBodacious
quote:
Adrian is a mans name and this CFO is definitely a man.
Yo Adrian!
Posted on 11/25/24 at 9:59 am to secfballfan
Most shocking news of all is Macys is still in business
Posted on 11/25/24 at 10:02 am to kywildcatfanone
quote:
How can an "employee" do that? Was it a multimillionaire CEO
Sounds like you never worked in a CFO office.
Posted on 11/25/24 at 10:09 am to SloaneRanger
quote:
Ah, McKinsey. This is just more evidence for the point I was making. This guy prolly got where he is without learning anything about auditing or internal controls. This debacle is the result. No competent CFO should let something like this happen on his watch. He was either in on it or was grossly unqualified.
You’re not necessarily wrong, but I think the point that poster was making is that this guys path to the CFO position was typical. Lots of C-suite people are McKinsey/Bain/BCG alum.
Posted on 11/25/24 at 10:12 am to kywildcatfanone
quote:
How can an "employee" do that? Was it a multimillionaire CEO?
Pretty sure it probably started as a mistake.
Company decides to launch some new delivery channel/partnership.
Some kid with 3 years of accounting experience (probably one year of some mid tier accounting firm before leaving for their first staff job because it was too stressful) is told to perform an accounting assessment.
Kid incorrectly does something like defer the value of the entire deal so it's sitting as a asset and not recognized monthly/quarterly as delivery services are consumed.
Kids manager isn't paying attention and didn't realize they aren't recognizing the expense.
Eventually, someone realizes the mistake but instead of fixing it, they "hide it" so they don't get intro trouble.
It accumulates overtime and winds up being $150M over several years. It sounds like a lot but $50M a year is literally less than 1% of their annual SG&A expenses.
This post was edited on 11/25/24 at 10:13 am
Posted on 11/25/24 at 10:13 am to Sterling Archer
Accounting sounds boring and hard
Posted on 11/25/24 at 10:20 am to Sterling Archer
quote:
Some kid with 3 years of accounting experience (probably one year of some mid tier accounting firm before leaving for their first staff job because it was too stressful) is told to perform an accounting assessment.
Kid incorrectly does something like defer the value of the entire deal so it's sitting as a asset and not recognized monthly/quarterly as delivery services are consumed.
Kids manager isn't paying attention and didn't realize they aren't recognizing the expense.
Eventually, someone realizes the mistake but instead of fixing it, they "hide it" so they don't get intro trouble.
It accumulates overtime and winds up being $150M over several years. It sounds like a lot but $50M a year is literally less than 1% of their annual SG&A expenses.
100% plausible, and that would explain why the CFO still has a job. I would expect internal audit or some other oversight function to catch that considering it persisted over three fiscal years.
Posted on 11/25/24 at 10:22 am to Evil Little Thing
quote:
There’s no way that guys 50
Posted on 11/25/24 at 10:29 am to secfballfan
If he is an engineering major and 50 I went with him to LSU……
Same time frame same college (engineering)
Do not recall the name
EDIT:
Chemical engineering major. So less likely I had class with him.
Same time frame same college (engineering)
Do not recall the name
EDIT:
Chemical engineering major. So less likely I had class with him.
This post was edited on 11/25/24 at 10:32 am
Posted on 11/25/24 at 10:31 am to secfballfan
quote:
LINK
Macy's said a former employee concealed up to $154 million in delivery expenses over the course of nearly three years.
The person who allegedly hid the money is no longer with the company, the department store operator said Monday morning, ahead of its third-quarter earnings report. The company, whose statement on the matter didn't say when the person left the job, didn't immediately respond to a request for comment.
Macy's CFO Adrian Mitchell, LSU engineering undergrad, Harvard MBA, 50 years old, of course he still has his job!
Assuming it was the accountant over that section of the income statement how in the world does the CFO not $154mm, even spread over 3 years, even for a large company?
Might want to update their margin triggers.
Posted on 11/25/24 at 10:46 am to DavidTheGnome
quote:
There’s no way that guys 50
Black don’t crack
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