Gregg Steinhafel could be eligible for millions of dollars in severance after stepping down from the top position at Target, according to reports.
It was announced Monday that Steinhafel was departing as the CEO of one of the nation's largest retailers, which makes him eligible for severance as long as he adheres to certain conditions, according to a filling with U.S. Securities and Exchange Commission.
Target hasn't clarified if Steinhafel's exit was voluntary or involuntary, which could impact his compensation, Twin Cities Business says. The final details of his severance package haven't been disclosed, and will be based on this year's proxy filings, which haven't been filed yet.
Some media outlets have taken a look at Target's proxy filings from 2013, which detail compensation packages for the company's leaders under a variety of scenarios, the Star Tribune notes.
Twin Cities Business says last year's filing shows Steinhafel had a salary of $1.5 million, in addition to his compensation package that includes $11 million under the company's Income Continuance Policy, $9.3 million from his Officer Deferred Compensation Plan and $6.3 million from accelerating vesting of restricted stock awards.
Based on the numbers from last year's proxy, the Star Tribune estimates Steinhafel could be eligible for approximately $26 million in severance, however, that number depends on a variety of factors including Target's stock prices, which have been lower, and his bonus, which could also be lower because it's based on the company's financial performance last year.
Other media outlets are reporting different numbers. USA Today estimates Steinhafel could get more than $55 million in stock and pension benefits.
The International Business Times says that because Steinhafel's exit was voluntary, he'll receive far less – just more than $9 million. International Business Times says if he had been fired, he would have received more than $17 million in severance and stock.
Business Insider says Steinhafel will likely receive more than $9.2 million, but if he had been fired he would get close to $26 million.
Twin Cities Business notes that Target has a history of large severance payments – in 2008, Target paid outgoing CEO Robert Ulrich $164 million.