The public now knows how much gold is actually in Gregg Steinhafel's parachute.
In a story headlined "Target discloses ex-CEO's golden parachute," the Business Journal reported that the former CEO will pocket a $15.9 million package that covers severance pay and benefits. The Pioneer Press story's headline on the package put it like this: "Ousted Target CEO Steinhafel getting $16 million to go away."
The numbers are revealed in documents filed with the Securities and Exchange Commission on Monday. Here are the SEC filings.
Steinhafel, 59, started his career at Target as a merchandising trainee and spent 35 years rising through the management ranks before becoming president in 1999 and CEO in 2013. He left the top job at the nation's No. 2 discount retailer two weeks ago in the fallout of the massive data breach that exposed financial data belonging to millions of Target customers. Analysts said that Target's troubled Canadian rollout and sluggish U.S. sales contributed to his demise.
The package is smaller than the $26 million in severance that was previously predicted. The Star Tribune noted that the filings showed that Steinhafel’s base pay remained at $1.5 million in the company’s 2013 fiscal year but did not get an incentive bonus because of unmet performance expectations. It added that "his post-termination benefits are shaped by a $7.2 million payment as part of the company’s income continuation plan, a condition of his employment agreement that is a calculation based on his salary and previous bonuses." The package, approved by Target’s board of directors last week, entitles Steinhafel to stock options and other deferred compensation that amounts to just over $14 million, based on Target’s current stock value.
Steinhafel will get $21.3 million from the company, but will have to repay $5.4 million in enhanced early retirement benefits under a supplemental pension plan.
Last year, Steinhafel received nearly $13 million in total compensation, a drop from the $20.6 million he earned in 2012. The Associated Press story notes that his total pay fell 35 percent in his last year at the helm as the company's board revamped compensation plans amid complaints from shareholders that he was paid too much.
He will remain an adviser to Target until no later than Aug. 23, and will receive the same base salary and benefits that he did as CEO.