Brian Cornell Target Corp.
Total compensation: $22,553,951 for the year ended Feb. 2
Non-equity incentive pay: $5,266,195
Other compensation: $557,376
Exercised stock options: $0
Value realized on vesting shares: $15,345,765
New stock options: 0
Median employee pay: $22,439
CEO pay ratio: 767:1
Total fiscal 2018 shareholder return: 0.9%
Note: Target's multiyear investment plan in its stores and operations launched in 2017 has begun making progress in 2018 and helped Cornell earn his largest bonus at Target. The $5.3 million, an 8.9% increase over the previous year, was 200% of the goal for the annual cash incentive portion of his pay plan.
Goals for the short-term cash incentive award are sales and operating income and the company exceeded expectations on both measures as store traffic and online orders increased. Revenue for the year was $74.4 billion, $2 billion more than the annual goal.
As part of that multiyear investment plan the company also shifted the mix of short-term incentive goals, placing more emphasis on the sales component and less on the operating income goal knowing that increased investment in store remodels, increased delivery options and raising wages for store workers would increase costs, potentially affecting the operating income. But exceeding the sales goal also helped Target top the operating income goal by $190 million.
Cornell also saw his base salary rate increase from $1.3 million per year to $1.4 million, the first change to his base rate since joining Target in 2014.
The bulk of Cornell's compensation came from previously issued restricted stock awards that vested during the year worth $15.3 million helping Cornell realize $22.6 million, a 17.8% increase over the previous year.
In 2017, Target also changed the timing of its long-term equity award grants and that affected the way totals are calculated in the summary compensation table of the proxy. They now grant equity awards after the entire fiscal year is completed and proxy rules dictate that equity awards are counted in the year they are granted.