Price is everything at Target. The company promises to make every effort to keep the prices of all its products as low as possible. It reflects Target’s reputation for affordability that is linked to it. In fact, it offers some of the most appealing prices, with most of the items on sale being discounted by up to 25 percent. It was reported that Target CEO salary is 775 times the median salary of its employee. How has Target managed to give such an impressive compensation while its products are priced so low? Read ‘til the end of this article to learn more.
What is Target Company
Target is based in the United States as a large-scale general products discount retailer. Target is one of the biggest discount merchants in the country. Its red bull’s-eye emblem is well-known across the United States.
Target was founded in 1902 as Goodfellow Dry Goods by George Draper Dayton. The name became Dayton Dry Goods Company the next year. Then, it changed to Dayton Company in 1911. The first Target store debuted in 1962. It provides emphasis on quick shopping at reasonable discount rates. It was located in the Minneapolis suburb of Roseville, Minnesota.
Target was considered as the top income earner in Dayton-Hudson by 1975. By 1979, the yearly sales of Target had surpassed $1 billion. In 1990, the first Target location was founded. This store had a larger inventory than typical Target stores. On September 30, 1990, the first Target Greatland opened its doors. It showcased excellent customer service, superb store layout, and reasonably priced items. Its first ever SuperTarget store opened in Omaha, Nebraska. It happened five years later. This featured a full-service grocery store, a photography studio, a drugstore, and diners.
Expect More. Pay Less. ® was the brand promise released by Target Stores in 1994. This aims to capture the distinctive shopping experience Target provides. The brand promise is a logical progression of Target’s dedication to giving back to the community. It also provides customers with value, quality, and service in a lively and welcoming retail atmosphere.
Dayton-Hudson sold off Mervyn’s and Marshall Field and Company. It was in the year 2004. He then changed the business name to Target Corporation in 2000. This is to give emphasis to its Target locations. By the turn of the 20th century, Target had made its reputation. It provided high-end goods at competitive prices. Customers particularly preferred the limited-edition clothing lines manufactured through collaborations with renowned fashion designers.
Target announced in 2012 that it would be providing $4 million a week to regional communities. This increased its commitment to giving back to the community. The company has donated 5 percent of its profits to local communities every year since 1946. It aims to fight poverty, promote disaster preparedness & relief efforts, and support education.
Target CEO
Target is a pioneering omnichannel growth company in American retail. It is headed by Brian Cornell as board chairman and CEO.
In 1981, Cornell graduated from UCLA with a bachelor’s degree. After that, he attended the Anderson School of Management. Cornell joined Target in 2014. He moved fast to craft a corporate strategy that capitalized on Target’s strengths. These relate to customer service, design know-how, brand management, and brand development. Cornell made significant investments in digital, data, and supply chain skills. It helps position the company’s stores at the core of both traditional and online shopping. Cornell spearheaded significant investments in salaries, benefits, and team building. He also focused on multifaceted and equal representation. He also built a corporate environment that inspires associates to care, develop, and succeed as a team. These serve as recognition of the significance of the Target team and culture to success.
He worked at renowned retail and consumer product businesses for more than 30 years. He served through responsible leadership roles before joining Target. He served as CEO of Michaels, Sam’s Club, and PepsiCo Americas Foods. Also, he worked as Chief Marketing Officer at Safeway Inc. He gained a better understanding from his previous roles that he now applies at Target.
Cornell advocates for inclusion and diversity in business governance throughout his professional life. Cornell serves on the Catalyst board. Also, in the council for the Smithsonian’s National Museum of African American History and Culture. The National Retail Federation recognized Cornell as the “Visionary” for 2022. Moreover, Cornell was selected the Top CEO of the Year by CNN.
Recently, Cornell’s stay was announced to last longer than that of former executives. The company waived its standard retirement age of 65 in September 2022. This was to let Cornell work for three more years in the company. It was after the board decided to drop the retirement policy that may have pushed his departure. He will continue to lead the retailer as it struggles through a time of high inflation and overstocked shelves.
Target CEO Salary Information
Brian Cornell, chairman and CEO of Target Corp., earned $19,758,766 in total payment. This was for the second consecutive year in 2021 as Target thrived amid the pandemic’s chaos. Target was recognized as an essential shop. As a result, it continued to operate during required COVID-19 lockdowns. The bull’s-eye retailer drove comparable sales up 12.7 percent last year.
Cornell received $1,400,000 as his base pay, and $3,996,440 as bonus and non-equity incentive plan compensation. These comprised a total cash compensation of $5,396,440.
He also earned stock awards of $13,749,937. Stock awards made up the majority of Cornell’s compensation. However, its actual value will vary depending on how the company’s stock price performs.
There is a $0 change in pension value and non-qualified deferred compensation earnings. Cornell also earned a total of $612,389 in other incentive pay and certain perks. Included in this amount is $224,997 for security-related private aircraft use.
The total Target CEO salary is 775 times the median employee salary of the company amounting to $25,501.
Headquarters of Target
Target’s offices and supply chain facilities are spread out across the world. They are much more than physical locations. They are the hubs of strategy, community service, pleasure, and enjoyment. Target’s headquarters are in downtown Minneapolis, Minnesota. They are in cities and neighborhoods across the nation. Target’s stores are less than 10 miles from most American homes.
Their roots in Minnesota reach deep. They have called the Land of 10,000 Lakes home. It was from the very beginning when their first store opened in Roseville, Minnesota. Their Twin Cities corporate offices currently house more than 12,000 team members. They are designers, business analysts, engineers, and many other professions.
Target’s Bengaluru, India office is an extension of Target’s headquarters in Minneapolis. It housed more than 3,000 team members. The team members collaborate closely with their Minneapolis counterparts. This helps provide even greater experiences for Target’s customers.
Conclusion
Target’s reputation extends beyond its national boundaries because of its business practices. Target places a strong emphasis on maximizing the experiences of its clients. Target is committed to supporting the preservation of thriving communities and a vibrant business sector. This describes how it was able to rise to become one of the top ten largest retailers in the United States.
Without a doubt, Brian Cornell has an excellent track record. He has also been instrumental in Target’s great financial performance over his tenure. Hence, the Target CEO salary is indeed reasonable.