The top executives at Target Corp. all received pay cuts in 2007, although Robert Ulrich, chairman and chief executive officer, is leaving his post with $140.8 million in deferred compensation from his 41 years with the retailer.
This story first appeared in the April 8, 2008 issue of WWD. Subscribe Today.
The deferred compensation represents accumulated savings, earnings and supplemental pension benefits, according to a filing with the Securities and Exchange Commission on Monday.
In January, Ulrich said he would step down on May 1.
Last year, Ulrich saw the biggest drop in total compensation among the company’s upper echelon. However, he was still the top earner at $12.2 million, a 66.5 percent cut from the $36.4 million in 2006. Ulrich’s 2007 compensation included a salary of $1.7 million, bonus pay of $2.2 million and stock option awards valued at $7.7 million.
The biggest difference in the chairman’s compensation came in the area of stock awards, which showed up as a negative $2.2 million in 2007 for accounting reasons, but had weighed in at a hefty $16.6 million the year before.
Compensation for president Gregg Steinhafel, who is set to become ceo when Ulrich retires, was cut in half last year to $6 million from $12.1 million in 2006. Steinhafel received a salary of $1.2 million and a bonus of $448,000.
Other Target executives taking pay cuts last year included Douglas Scovanner, executive vice president and chief financial officer, down 14.2 percent to $5.6 million; Michael Francis, executive vice president of marketing, off 18.6 percent to $4.2 million, and John Griffith, executive vice president of property development, down 27.5 percent to $2.5 million.
On Monday, Target promoted Kathee Tesija to executive vice president of merchandising. She takes over the responsibility from Steinhafel and will oversee all aspects of merchandising, including product design and development, inventory management and presentation.
Tesija started at Target in 1986 and held a variety of jobs in the firm’s merchandising organization. In 2001, she was named senior vice president of merchandising overseeing beauty, commodities, electronics and other goods.