May 1 Target Corp's Chief Executive
Brian Cornell took a sharp cut in compensation after the company
failed to meet financial goals in a year marred by declines in
sales and share price.
Cornell's cash-and-stock compensation fell by nearly a third
to $11.3 million, according to a document filed with regulators
two months after the company reported results that sent its
stock tumbling to 2-1/2-year lows.
In February, Target reported a steeper-than-expected fall in
fourth-quarter sales and told Wall Street its sales and profit
estimates for 2017 were too high.
As per Target's short-term incentive plan, Cornell's
compensation is based on the performance of two financial
metrics: incentive EBIT, which makes up 75 percent of Cornell's
stock component, with the rest based on adjusted sales.
Target said it missed its 2016 incentive EBIT goal of $5.74
billion by $623 million and fell short of its adjusted sales
target of $71.62 billion by $2.13 billion.
Target's stock lost about 10 percent of its value during the
fiscal year ended Jan. 28.
In 2014, when Cornell joined Target, his total compensation
was $28.2 million, 97 percent of which was in stock awards. By
2016, his stock component had plunged 65 percent to $9.7
Chief Financial Officer Cathy Smith's compensation for 2016
fell by 41.3 percent to $4.4 million, while Chief Operating
Officer John Mulligan's compensation fell by 32.7 percent to $7
In contrast, bigger rival Wal-Mart Stores Inc gave
CEO Doug McMillon a 13 percent pay hike, following strong sales
performance at the world's largest retailer.
(Reporting by Richa Naidu and Siddharth Cavale in Bengaluru;
Editing by Anil D'Silva)