Target Corp.’s top leader took a $2.1 million hit to his compensation last year after a surge in inventory hammered the retailer’s profit.
(Bloomberg) — Target Corp.’s top leader took a $2.1 million hit to his compensation last year after a surge in inventory hammered the retailer’s profit.
Chief Executive Officer Brian Cornell got total pay of $17.7 million for the fiscal year ending in late January, down from $19.8 million the year before, Target said Monday in a regulatory filing. The decline was largely due to a sharp drop in compensation from the retailer’s non-equity incentive plan, which is tied largely to sales and operating income.
While Target’s revenue increased last year, operating income tumbled by more than half as consumers pulled back from discretionary items amid soaring inflation and spent more on groceries and services. Shifting demand trends forced Target and rivals such as Walmart Inc. to slash prices on merchandise such as home goods and apparel, dragging down profits.
For the current fiscal year, Target is predicting a profit rebound. In February, the Minneapolis-based company reported a slight decrease in inventory during last year’s fiscal fourth quarter, including a sharper drop in its stockpile of discretionary goods. The declines signaled that Target has made progress in taming inventory bloat.
Walmart CEO Doug McMillon received $25.3 million in total pay last year, down less than $400,000 from the previous year, the company said in April. He also took a hit in non-equity incentive plan compensation, while getting a little more in salary and stock awards. Walmart also reported a decline in operating income and other profit measures last year.
Both retailers report fiscal first-quarter results in mid-May.
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