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.
The goal stayed ahead of the competition thanks to investments in fulfillment and e-commerce that helped the company shop faster than most other customers.
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 FY2020 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 is up 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 Quota: A comparison of the CEO’s compensation with that of the middle employee in an organization was 805 to 1, compared to 821 to 1 in the previous year.
The CEO Compensation Quota includes the CEO’s total 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, put on leave, or reduced its store employees’ pay during the year, instead handing out five rounds of bonuses to keep employees in order and order as they adapted to changing conditions and new ways of working.
Overall, Target would spend approximately $ 1 billion on bonuses, new and enhanced employee benefits, and health and safety investments for its employees over the course of 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.
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