Wednesday, May 02, 2012

Lots Wrong With This Picture

Let's visit another report on a CEO's 2011 earnings (courtesy of the Minneapolis Star Tribune):


Gregg Steinhafel, chairman, president, CEO

Total compensation: $19,260,390 for the year ended Jan. 31

Salary: $1,500,000

Bonus: $1,250,000

Non-equity incentive pay: $2,205,000

Other compensation: $5,523,988

Value realized on vesting shares: $8,781,402

New stock options: 397,773

Total fiscal 2011 return to shareholders: -5.3 percent
[Emphasis added]

OK, it's not as much as Mr. Hemsley of United Healthcare (see my post here), but still a decent chunk of change, especially since the shareholders didn't get anything this time around. Mr. Steinhafel hasn't quite made it into the 1% range, but he's working on it.

Even so, let's do a little math. Let's assume that in the best of all possible worlds the average employee of Target makes as much as 10% of the CEO, including (of course) benefits beyond straight salary: healthcare coverage, pension/401(k)contributions, stock options. That would make their annual salary $192,600+.

Do you know anyone working at Target making that much? I don't, although there might be a few in mid to upper management.

And the shareholders didn't get any turkee this fiscal year and still gave Steinhafel a $2.2 million bonus.

Like I said, there's something wrong with this picture.

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