CEO Pay Watch
BRIAN CORNELL Target Corp.
Chairman and CEO
Total compensation: $8,980,274 for the year ended Jan. 30, 2016
Nonequity incentive pay: $1,950,000
Other compensation: $273,379
Value realized on vesting shares: $5,456,895
Total fiscal 2016 shareholder return: 1.2 percent
Note: Target gave Cornell $27 million worth of restricted stock awards when he was hired in July 2014; $5.5 million worth of those awards vested and were realized last year.
In 2015, Target also gave Cornell $13.4 million worth of new stock awards that will vest and be realized at a later date. That award had two components: $9.7 million in an annual grant award and $3.75 million as a one-time strategic alignment award.
The strategic alignment awards given to Cornell and other Target executives "were granted in March 2015, recognizing a change in leadership and a refocused strategy following the exit from Canada." Grants of the one-time strategic alignment awards were made after Target had discussed compensation and incentives with some of its largest shareholders.
The strategic alignment awards will depend on financial performance in fiscal 2015 and 2016 and were meant to drive long-term strategic growth of Target consistent with the transformation the company made after its exit from Canada.
Cornell earned a $1.95 million bonus for last year's financial performance, and other executives earned annual incentive bonuses as Target largely met goals set for fiscal 2015, but this was the first time in the last three years an award was made in this category.
The Target board has made a number of changes under Cornell, including the addition of four new directors with more retail experience. Last year the board made some good governance measures by adding an infrastructure and investment committee and a requirement that all board chairs also serve on the risk and compliance committee.