Outstanding analysis by Rosanna Landis Weaver of As You Sow:
With pay of over $28 million Target’s new CEO Brian C. Cornell is the highest paid in the retail industry in 2015. That doesn’t reflect his full year’s pay however: he has only worked for the company since August. The largest portion of his pay was $19.3 million in equity awards given, “to compensate Mr. Cornell for incentive awards from his former employer that he forfeited to join Target.” Called “make whole” grants, this practice is a boon for executives but not for shareholders. This is particularly the case shareholders who own stakes in both companies. Since Cornell has received three new hire packages at S&P 500 companies in the last seven years, most large funds are shareholders in each of these companies and have paid multiple times for his arrival and departure.