Skip to main content

Target discloses ex-CEO's Steinhafel's severance package

  • Author:
  • Updated:
    Original:

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.

Next Up

FSmb9kkWAB0UBqk

Ferocious winds, possible tornadoes leave destruction in MN

Numerous reports of tornadoes and nearly 100 mph straight-line winds.

canoe

Canoe carrying 4 overturns near St. John's University

Of the four, only one was wearing a lifejacket when the boat capsized Wednesday.

pexels beer bar craft brewery

MN's craft alcohol makers back new push to loosen state's liquor laws

The pushback includes loosening restrictions on growler sales for bigger craft breweries and a more direct line of spirit sales to customers.

Screen Shot 2022-05-12 at 8.02.19 PM

Severe thunderstorm warnings in the Twin Cities

It's the second night in a row that severe storms are hitting the metro.

storm

Twin Cities placed in tornado watch ahead of intense line of storms

Photo above is a view from Marshall as the line of storms moved through Thursday evening.

fire pixabay stock

1 dead, 1 escapes western Wisconsin house fire

The single-story home was fully engulfed in flames when first responders arrived early Wednesday morning.

Wind storms tree

Rare 'particularly dangerous situation' weather watch issued in SW MN

The warning covers an area of Minnesota, South Dakota, Iowa, and Nebraska.

fire, firefighter

Dad and 2 children killed in western Wisconsin house fire

A devastating house fire happened early Thursday morning.

Screen Shot 2020-08-14 at 6.45.53 PM

2 suspects involved in Brooklyn Park armed carjacking

The incident happened Wednesday night near a shopping center and Cub.

Alexander Odegaard

Man sentenced to more than 10 years in prison for child pornography

Alexander John Odegaard was sentenced in U.S. District Court Tuesday.

Screen Shot 2022-05-12 at 12.15.21 PM

Victim in I-90 crash was storm-chasing meteorologist from Mexico

Martha Llanos Rodriguez died in the wreck on I-90.

Related