The CEO of discount retailer Target Corp. received a pay package in 2010 worth $23.9 million, 83 percent more than he made in 2009, because he became eligible for enhanced pension benefits and his stock awards rose as the company's performance improved, according to documents Target filed Friday with the Securities and Exchange Commission.
Gregg Steinhafel, 56, received a base salary of $1.5 million and a bonus of $1.2 million, according to Associated Press calculations. He received stock options worth $3.2 million and stock awards worth $8 million when they were granted. That includes a stock award of $3.25 million he got in March 2010 that includes both a $1.1 million bonus for 2009 and part of his performance-based bonus for 2009.
Steinhafel also received a performance-based bonus of $4.1 million and above-market returns of $376,229 from the nation's second-largest discounter.
His perks were worth $5.5 million, including an extra pension plan payment related to the fact that he turned 55 during calendar 2010 plus nearly $2.6 million from a supplemental pension plan that has been frozen to new participants since 1989. Steinhafel joined the company more than 30 years ago.
Steinhafel has been CEO since 2008. During his tenure, Target, which has carved out a niche as a cheap chic discounter, has expanded its food selection and planned for new stores outside the U.S., in Canada. During the year, Target's net income rose 17 percent while its revenue rose 3.1 percent to $67.39 billion. Minneapolis-based Target's share price rose 24 percent during the year.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.
An Associated Press analysis of documents filed Friday shows Target Corp.'s CEO received 2010 compensation valued at $24.8 million, 83 percent more than in 2009, as he became eligible for enhanced pension payments and his stock awards rose with the company's improved performance.
Gregg Steinhafel's base salary was $1.5 million. He also got a bonus of $1.2 million, a performance-based bonus of $4.1 million, stock options worth $3.2 million and stock awards worth $8 million when they were granted. Part of the stock award is related to his 2009 bonus.
The 56-year-old CEO's other compensation of $5.5 million included extra pension plan payments related to turning 55 and to a supplemental plan.
The AP's calculation counts salary, bonuses, perks, stock and options awarded to the executive during the year.