Target CEO Brian Cornell's total compensation rises to $77.5M
Cornell's pay is 805 times more than the median Target employee
Target CEO Brian Cornell's compensation surged to $77.5 million in 2020.
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According to a proxy filing by the retailer, Cornell received a total compensation package of about $19.8 million, an increase of about 4.3% year-over-year. Cornell's base salary remained unchanged from the previous year at $1.4 million. However, he earned a $1.12 million incentive bonus tied to the company's sales and income performance and $4.48 million for a non-equity incentive plan.
The majority of Cornell's compensation came from long-term equity awards that were either vested or exercised in 2020, which had a combined worth of $70 million. About $40.8 million came from restricted stock that was vested in 2020, while another $29.2 million came from options that were exercised.
Cornell's pay is now 805 times more than the median Target employee, which increased 6.3% to $24,535 in fiscal 2020.
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Last month, Target reported a 66% year-over-year increase in the fourth quarter to net income of $1.38 billion, or an adjusted $2.67 per share.
The company's revenue for the quarter rose 21% to $28.34 billion. Same-day services, which include order pick-up, drive up and Shipt, increased by 212%, helping boost same-store sales by 21%. Comparable traffic grew 6% and average ticket size increased by 13%.
For the full year, sales grew by more than $15 billion – greater than the 11 previous years combined.
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Target did not lay off, furlough or reduce compensation of its store employees through the year. Instead, the company spent $1 billion more than the previous year on five rounds of bonuses, new and increased employee benefits, and health and safety investments. The company also accelerated its move to a $15 per hour starting wage for employees.
Target has invested a total of $200 million in its associates through bonuses. In January, all hourly team members within Target's stores, distribution centers, field-based offices and headquarters received a $500 bonus, while all store directors, executive team leaders and salaried distribution center leaders will received a bonus between $1,000-$2,000.
The company first doled out bonuses to store team leads in April followed by a one-time bonus of $200 for all hourly full- and part-time employees within stores and distribution centers in July. That same month, the company offered a performance bonus for all store directors, executive team leaders and salaried distribution center leaders.
In October, the company announced more than 350,000 frontline workers will receive a one-time bonus of $200 by early November, an investment of more than $70 million ahead of the holidays.
FOX Business' Daniella Genovese contributed to this report