Target CEO Brian Cornell's compensation in fiscal 2022 was $34.2 million, down 41% from the prior year. The biggest part of his compensation comes from restricted stock.
So while the company added $3 billion in revenue in 2022 it added nearly $30 billion over the previous three years, which drove his gains from previously issue long-term equity awards.
Here are the details.
- Total compensation for the year ended Jan. 31: $34,205,413
- Salary: $1,400,000
- Bonus: $693,000
- Non-equity incentive pay: $450,240
- Other compensation: $645,338
- Shares vested: $31,016,835
- CEO pay ratio: 680 to 1
- Median employee pay: $25,993
- Total shareholder return for year ended Jan. 31: -20.3%
Note: Cornell's base salary of $1.4 million has basically remained unchanged for the last five years. His overall compensation is driven by annual bonuses and restricted stock awards that reward longer-term performance.
Cornell's compensation at Target decreased from the $58.3 million in the prior year as the Minneapolis-based company fell short of financial and operational measures for the year.
Target increased sales by $3 billion in its last fiscal year, and store traffic grew by 2.1% amid rising inflation and slowing economic growth.
But annual cash incentives are also based on earnings and return on invested capital goals as well as a mix of "team scorecard" measures that includes market share gains, progress on diversity, equity and inclusion goals, and progress on the addition of new stores and remodeling of older ones. (Last year, the company added 23 new stores and remodeled 140 others.)
Altogether, Target achieved 41% of the combined annual goals. As a result, Cornell's combined annual incentives went down from $4 million to $1.1 million.
