Bowing to shareholder complaints that Target CEO
Steinhafel, a 35-year Target veteran, was ousted
In an era of increasingly large CEO pay packages, Target directors appear to have applied the company's "expect more, pay less" consumer brand campaign to executive compensation. The board said it had "exercised negative discretion" last year, providing no short-term incentive awards to senior managers. While Steinhafel took the biggest hit, other execs, including interim CEO
Target's proxy termed Steinhafel's exit as an "involuntary termination." But he remains in an advisory role until August and remains bonus-eligible, based on Target's 2014 financial performance. And while he's losing about
The company did not disclose which shareholders had pressured the board on executive pay, but it said it had met with two proxy advisory firms and those representing 40% of outstanding shares.
Target's board will also make it harder for executives to receive generous pay packages. It's ending stock option grants and replacing restricted stock grants with equity awards based on shareholder return.
Two other shareholder proposals are heading to a vote at Target's annual meeting on June11.
Target, which wants Will's proposal rejected, says eliminating executive perks would "put the company at a competitive disadvantage by eliminating a common pay element."
Another shareholder, longtime activist
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