The company said in a series of filings with the Securities and Exchange Commission Monday that Steinhafel will remain at Target until as late as Aug. 23 to assist in the transition in management. John Mulligan, chief financial officer, has been named interim president and ceo and Roxanne Austin, a director, has been appointed interim chair.
According to Target’s definitive proxy, Steinhafel, upon signing an agreement that includes a nonsolicitation clause and a release of claims, will be eligible for $7.2 million in severance payments, plus $10 million in a deferred compensation plan and, based on Target’s closing stock price as of May 5, restricted stock units with a grant date fair value of $4.1 million.
Subtracted from that total of $21.3 million are $5.4 million in supplemental pension plan payments forfeited in exchange for his severance.
The proxy showed Steinhafel’s compensation for 2013 dropped 37.3 percent to $13 million from $20.6 million for 2012. The cash portion dropped 65.8 percent to $2 million from $4.4 million as his salary was unchanged at $1.5 million while his performance-based cash bonus dropped to zero from $2.9 million.
The sum of his stock and option awards fell 2.9 percent to $10.2 million from $10.5 million but were solely in the form of stock options whereas the stock and option components were essentially equal in 2012.
Other payments were down 90 percent, to $509,000 from $5.1 million, with the principal difference the loss of $4.6 million in supplemental pension plan credits due to his dismissal.
Steinhafel stepped down as chairman, president and ceo of Target on May 5 following the discounter’s holiday data breach and its troublesome entrance into Canada, which contributed to a 34.3 percent drop in last year’s net income to $1.97 billion. Fourth-quarter revenues slid 5.3 percent, to $21.52 billion, as same-store sales were off 2.5 percent.
With his elevation to interim president and ceo, Mulligan’s salary has been raised to $1 million a year from $700,000 and his short-term incentive opportunity to 90 percent of his base salary from the previous level of 80 percent. He was also granted $1 million in restricted stock units that will vest in one-third increments on the anniversary of the grant date.
Target will hold its annual meeting at Union Station in Dallas at 1:30 p.m. Central time on June 11, the proxy said.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)