Goal CEO’s compensation soars to $77.5 million

Target Corp. 2020 had a banner year that resulted in its chief executive receiving $ 77.5 million in compensation.

Brian Cornell earned $ 21.6 million in the previous fiscal year.

The strategic work carried out before the pandemic laid the foundation for success during the pandemic. Minneapolis-based Target sales grew $ 15 billion during the year.

Thanks to the investments in fulfillment and e-commerce that have helped the company shop faster than most, the goal has always been one step ahead of the competition.

Cornell’s base salary was unchanged at $ 1.4 million, and he and other executives earned maximum payments for short-term incentive plans to meet sales and operating income goals and maximum payments for the team scorecard for other strategic actions to reach. Cornell’s two annual incentive payments were $ 5.6 million.

Most of Cornell’s compensation was in the form of long-term stock awards granted in prior years but either vested or exercised by Cornell in fiscal 2020 for a total of $ 70 million.

Of this, $ 40.8 million came from restricted stocks that vested during the year. The value of these awards was based on performance against fellow retailers and the stock’s total return, which rose 67% over the past year and 170% over the past three years.

Cornell realized an additional $ 29.2 million from exercising a special stock option grant in May 2017 to guide the executive team and Cornell through new strategic directions for the company.

These were price-option stock options that were granted at USD 55.60 per share. In addition to a normal three-year vesting schedule, Target’s share price had to trade above $ 75 per share for 20 consecutive days.

Those options had seven years to hit that $ 75 threshold, but the company hit that hurdle on June 29, 2018, as progress was made faster than Target expected.

Cornell exercised these options in August at prices between $ 152 and $ 155.88 per share.

These goals included store openings and renovations, supply chain improvements, and technology investments, which ultimately played a key role in Target’s success in the pandemic.

The CEO compensation ratio, a comparison of the CEO’s compensation with the middle employee in an organization, was 805 to 1, compared to 821 to 1 the previous year.

The CEO Compensation Quota includes the total CEO compensation from the Agent Summary Compensation Table, which includes salary, bonuses, other compensation, and the value of the grant date for long-term stock awards. The realized value of these long-term stock awards will vary from the grant value depending on the company’s performance and the share price during the period in which these awards are vested.

Cornell’s total compensation for 2020, according to Proxy, used in the CEO’s compensation rate was $ 19.8 million, up 4.3% year over year. Median employee compensation increased 6.3% to $ 24,535.

Target did not lay off, take leave or cut the remuneration of its branch employees during the course of the year. Instead, five rounds of bonuses were distributed to ordinary employees who had got used to changing conditions and introduced new ways of working.

Overall, Target spent approximately $ 1 billion on bonuses, new and enhanced employee benefits, and health and safety investments for its employees during the year. The company also accelerated its transition to a starting wage of $ 15 an hour for employees.

The increased rewards were $ 200 million, including payments in April 2020 for 20,000 store managers ranging from $ 250 to $ 1,500 for overseeing store operations and $ 200 for all hourly and full-time workers in July. Another round of $ 200 bounties was given to more than 350,000 frontline workers in October. In January, more than 375,000 employees, including seasonal workers, received awards ranging from $ 500 for all hourly workers to $ 1,000 to $ 2,000 for frontline team leaders.

Patrick Kennedy,

Star Tribune (TNS)

Comments are closed.