CEO Compensation Assignment

Introduction:

Target Corporation (NYSE TGT) is an upscale discount retailer that provides high-

quality, on-trend merchandise at attractive prices in clean, spacious and guest-friendly stores.

("Fact Sheet: Quick Facts About Target")Targets purpose is to make themselves preferred

shopping destinations for their guests and customers by having outstanding value, continuous

innovation and exceptional experiences to fulfill their Expect More. Pay Less. Brand promise.

Target promises that each time someone shops with them they can expect more and pay less.

("Expect More. Pay Less.: Target 2013 Annual Report | Target Corporate")

In 1881 George Draper Dayton founded Day to Dry Goods Company which is today

known as Target Corporation. In 1902 he forms with Goodfellows Dry Goods Company and

becomes the first president of the newly combined company. In 1911 it is renamed The Dayton

Company and becomes commonly known as Daytons Department Store. Then the Dayton

Company becomes a founding member of the Retail Research Association in 1916, which then is

renamed Associated Merchandising Corporation in 1918. In 1953, Daytons opens a commercial

interior department including furnishings, fabrics, and decorations for public business

institutions. In 1954 the company expanded outside of downtown Minneapolis to Rochester,

Minnesota. In 1962 Daytons Director of Publicity Stewart Widess and his staff go through over

200 possible names decide on Target and its bullseye logo. The first grand opening was in

Roseville, Minnesota and they separate themselves from other retail stores using features such as

fashion, quality and service mixed with the low prices of discount stores. In 1966 the first Target

stores open outside of Minnesota in Denver, Colorado. Then in 1983 Target opens stores in
Southern California. Target opens in the Pacific Northwest in 1988. In 1989 Target opens 30 new

stores in Kentucky, Tennessee, Georgia, North Carolina, South Carolina, and Florida. In 1993

Target expands to Chicago opening 11 stores. The first Super Target opens in 1995 in Omaha,

Nebraska. Target.com opens in 1999 to allow guests to shop from home. In 2008 the first target

opens in Alaska while in 2009 they open the first one in Hawaii. In 2014 Brian Cornell is named

the new CEO. ("Target through the years")

Brian Cornell is the Board Chairman and CEO of Target Corporation since August 2014.

Before working with Target he was the Chief Executive Officer of PepsiCo. March 2012 to July

2014. He was also the Chief Executive Officer and President of Sams Club of Wal-Mart

International from April 2009 to January 2012. Cornell graduated with a Bachelors degree from

the University of California, Los Angeles where he also went to the Anderson Graduate school of

Management.
Data:

Comparison of Company Financial Data

41,4 203,490 11,128.

44,5 204,75 10,201.
38
48,1 203,1 9,511.
85

Source: Google.com/finance

This graph is comparing the financials of Target, Wal Mart and TJX from 2013 to 2015.

The revenue of Target, Wal Mart, and TJX all individually went up a little more than $1000 each

year from 2013 to 2015. Targets Net Income from 2013 to 2015 went down into the negatives.

The net income of Wal Mart from 2013 to 2015 went down by about $600. TJX net income went

up by a few $1,100. The dividends per share for Target and Wal Mart are about the same while

the potion given by TJX are less than 1.

 Comparison of Companies Stock Performance

Source: Google.com/finance

When comparing the three companies stock performances over a five year period TJX

(Yellow) has the highest in stock performance while Wal Mart (Red) has the lowest. Target

(Blue), S&P 500 (Green), and Wal Mart (Yellow) are significantly lower than TJX (Yellow).

S&P 500 (Standard and Poor 500) is weighted by market value.

 Comparison of CEO Pay

Source: AFLCIO.org

The CEO of TJX has the highest salary out of Target and Walmart while Target has the

highest Bonus Value of Stock Award. TJX is the only CEO that has Value of Stock Option

Awards. When it comes to SEC total compensation Wal Mart has the least at $19,392,608 while

Target and TJX are close but TJX has the highest with $28,692,391.

Conclusion:

Many feel as though the pay gap is too big and getting bigger while CEO pay is rising

more and more each year. Even though many feel this way I feel as though it depends on the

CEO, some of them get paid so much and they feel their pay will go up even though they dont

do anything because they are CEOs and some of them do so much for their companies that they

deserve the money they are paid.

 Targets CEO, Brian Cornell, may have only worked with them for over a year now but he

knows much about working in companies from his past jobs. All CEOs get different pays and

benefits, not one is the same.

When it comes to Target, it has a history going back to 1881 and has evolved for over 100

years and is still growing and expanding today. As Target grows it wants to be a preferred

shopping destination and it is one for me and many other people I know. Target now having

stores all over the United States including Alaska and Hawaii they are becoming bigger than they

ever imagined.
 Works Cited
"Brian Cornell." Target Pressroom. Web. 7 Dec. 2015.
<http://pressroom.target.com/leadership/brian-cornell>.
"CNBC Explains: CEO Compensation." CNBC. 18 May 2015. Web. 8 Dec. 2015.
<http://www.cnbc.com/2015/05/18/why-corporate-ceo-pay-is-so-high-and-going-
higher.html>.
"Expect More. Pay Less.: Target 2013 Annual Report | Target Corporate." Expect More. Pay
Less.: Target 2013 Annual Report | Target Corporate. Web. 6 Dec. 2015.
<https://corporate.target.com/annual-reports/2013/business/expect-more-pay-
less>.
"Fact Sheet: Quick Facts About Target." Target Pressroom. 2015. Web. 6 Dec. 2015.
<http://pressroom.target.com/corporate>.
"List of Private Companies Worldwide, Letter." Bloomberg.com. Bloomberg. Web. 7 Dec. 2015.
<http://www.bloomberg.com/research/stocks/private/person.asp?
personId=9778343&privcapId=174438>.
"Paywatch 2014." AFL-CIO. Web. 8 Dec. 2015. <http://www.aflcio.org/Corporate-
Watch/Paywatch-2014>.
"Target through the Years." Target Corporate. Web. 7 Dec. 2015.
<https://corporate.target.com/about/history/Target-through-the-years>.
"The Overpaid CEO." Democracy Journal. Web. 8 Dec. 2015.
<http://www.democracyjournal.org/34/the-overpaid-ceo.php?page=all>.