Target Corporation’s (NYSE:TGT) CEO, Brian Cornell’s pay package for the last year is $28.2 million. The compensation includes a make whole package Cornell got as an incentive to leave his former post at PepsiCo, Inc. (NYSE:PEP). Mr. Cornell joined Target from PepsiCo, and received $14 million as make whole compensation according to regulatory filing.
Cornell as supposed to receive awards worth $19.2 million from PepesiCo, however, that could not materialise due to his shift to Target. He, however, received $5.2 million in remuneration from Pepsi leaving another $14 million to make whole his loss. The remainder of $14.2 million was made whole by Target after his move to the company. Cornell’s compensation for part of the year he was with Target totalled $5.2 million with $595,000 in salary.
Target finds itself in a hole due to many years of disappointing results. Target has been lagging behind its competitors in the sales department. The company has not been doing well and has failed to distinguish itself in the hip market. The company was therefore forced to compete trying to stand out in the low price commodities like toilet paper and laundry detergent.
Target had a disastrous expansion into Canada and had a data breach in 2013. This caused the executives to rethink the direction the company was taking and the purpose of the company. The downward spiral of the company forced the removal of the company’s previous CEO, Gregg Steinhafel.
Target posted the best results in three years in February this year. The new change under Cornell that include a greater focus on apparel and home goods and free holiday shipping seem to have a positive impact. The consumers seem to be responding positively to the changes brought by Cornell. The company recently announced major job cuts as part of a $2 billion savings plan.
