Apr 7, 2008 12:22 pm US/Central
Target CEO Earns $20M, Despite Sluggish Profits
MINNEAPOLIS (AP) ―
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Profits grew last year for Target, the nation's second-largest discount retailer, but not by much.
Target admitted that its performance last year "fell well short of our goals," but Chairman and CEO Robert Ulrich's total pay grew 10 percent to $20 million anyway.
Profits grew last year for the nation's second-largest discount retailer, but not by much. In its proxy statement on Monday, Target Corp. said it reduced some incentive payments and long-term performance share awards after sales growth "slowed significantly" in the second half.
Ulrich's 2007 bonus dropped to $2.2 million, from $3 million the prior year. His incentive plan pay dropped to $685,440 from $3.1 million a year before.
However, bigger stock and option awards caused his overall compensation to grow anyway. Those included a January 2008 grant of $4.6 million worth of options to buy 255,677 shares of stock.
Ulrich also collected a base paycheck of almost $1.7 million. Other compensation included retirement contributions of about $1 million and transportation expenses -- including personal use of the company plane -- worth $206,182.
Ulrich has said he will retire as CEO on May 1. President Gregg W. Steinhafel is set to take over. Target paid Steinhafel almost $9.7 million last year, down from almost $14 million in 2006 because of smaller stock-related awards.
Steinhafel's base pay was $1.2 million. His bonus of $447,680 increased from the prior year, when it was $389,411. Like Ulrich, Steinhafel received $4.6 million in options granted in January 2008.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation, and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.
Target's 2007 profit was $2.85 billion, up slightly from $2.79 billion the year before. Revenue rose 6.5 percent to $63.37 billion.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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