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Brian Cornell, chair and chief executive officer of Target Corp., saw his pay package hit $20.4 million last year with a big boost from stock awards.
Cornell’s overall compensation rose 6.3 percent and included a salary of $1.4 million, bonus and incentive pay totaling $2.3 million and stock awards valued at $16.1 million.
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It’s typical in corporate America for CEOs to get big pay packages that are stock-heavy. The stock awards are one way Target seeks to tie pay to performance, as they are only awarded once certain thresholds are met and their ultimate value fluctuates with the company’s shares on Wall Street.
Cornell is among the highest-paid CEOs in retail, but not the highest. Last year his pay package was outstripped by Walmart Inc. CEO Doug McMillon, whose compensation tallied $27.4 million, including stock.
Target has hit some turbulence lately — fourth-quarter comparable sales dropped 4.4 percent — but Cornell has laid out plans to boost revenues $15 billion over the next five years.
Delivering on that promise will in all likelihood be a job for future CEOs.
Cornell has already shown remarkable staying power in the job and committed in September 2022 to stay for “approximately three more years,” putting a potential exit on the horizon this year or next.
At that time, the retailer’s board also eliminated a retirement policy that was “designed to initiate a discussion regarding the possible retirement of its CEO at the age of 65.”
A Target spokesperson said there have been no updates on the CEO’s plans.
The retailer does have a long list of prominent executive vice presidents — including chief operating officer Michael Fiddelke, chief commercial officer Rick Gomez and chief strategy and growth officer Christina Hennington — but there is little outward talk of succession.
So Cornell could also stay put, especially as Target does not have employment contracts with its top executives.
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