Target Slashes CEO Pay Package After Bleak Year

Target Corp’s (TGT.N) 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.

As per Target’s short-term incentive plan, Cornell’s compensation was based on the performance of two financial metrics: incentive EBIT, which makes up 75 percent of Cornell’s stock component, and the rest 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.

“This looks pretty normal in terms of executive compensation and, I think, it is actually good executive compensation in a turnaround situation,” said Paul McConnell, managing director at Board Advisory LLC, an executive compensation, performance and succession advisory group. (Read more from “Target Slashes CEO Pay Package After Bleak Year” HERE)

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