Target cut Steinhafel compensation before termination

Minneapolis – Target Corp. cut the compensation of former CEO Gregg Steinhafel to $13 million in fiscal 2013 from $20.6 million in fiscal 2012. According to a regulatory filing, Target decided to reduce Steinhafel’s total compensation after holding meetings and calls with shareholders owning 40% of total company shares and two proxy advisory firms.

Steinhafel’s pay remained flat at $1.5 million and he received no bonus. He also did not receive option awards or non-equity incentive plan compensation, compared to a combined $8.13 million in the prior year. Other compensation was reduced to about $500,000 from $6 million, although his stock options were doubled to $10.2 million. Target decided to reduce Steinhafel’s compensation due to Target’s performance, which it said was hampered by a high-profile data breach and the company’s entry into Canada.

Target also acknowledged in the filing that Steinhafel was involuntarily terminated. Most other executives also did not receive a bonus, except CFO John Mulligan, who received a $150,000 bonus. Mulligan is serving as interim CEO while Target searches for a permanent replacement.

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