NEW YORK – Former Target CEO Gregg Steinhafel’s total pay fell 35 percent to $13 million in his last year at the helm as the company’s board revamped compensation plans amid complaints from shareholders that he was paid too much, according to a regulatory filing.
Steinhafel, who had earned nearly $20 million in the previous year, stepped down from the chairman and CEO role and resigned from the board earlier this month in the wake of a massive data breach and a botched expansion plan in Canada that have hurt its sales and profits.
In documents with the Securities and Exchange Commission, Target described Steinhafel’s departure as an “involuntary termination for reasons other than cause.”
John Mulligan, the company’s chief financial officer, was named interim CEO while the company searches for a new leader. Steinhafel agreed to serve as an adviser during the transition.
Target said in documents filed Monday that more executive compensation is being tied to relative performance compared with similar companies. As a result, Steinhafel didn’t receive any option awards or cash bonus.
Steinhafel’s base salary remained the same at $1.5 million. During his advisory period, he will continue to receive the same base salary and benefits that were in effect the day that he stepped down.
Steinhafel is eligible to receive $15.8 million in severance, according to documents filed Monday. He will also receive an additiona l $33.1 million from his deferred compensation plan.