In an SEC filing this morning, Target moved to adjust compensation packages for their high level executives, as well as issue the details of former CEO Gregg Steinhafel's departure.
Steinhafel will remain employed by Target through August 23rd, in an "advisory capacity" meant to aid with the transition process. Until then, he will continue receiving the same salary and benefits he received as CEO. In 2013, Steinhafel's compensation dropped to $13 million, a 37 percent decrease.
Target is parting ways with Steinhafel on good terms, keeping him eligible for the "fiscal 2014 short-term incentive opportunity," which would be prorated. They are also offering him a severance package, however, a monetary amount was not specified in the filing. As a condition of the package, Steinhafel must hold true to his non-compete clause: "severance payments may be recovered and that any outstanding equity awards held by him may be terminated if he becomes employed by specified competitors."
The filing also addresses interim CEO John Mulligan, whose base salary was increased from $700,000 to $1 million. Mulligan was also awarded $1 million in restricted stock units, set to vest "in one-third increments on each anniversary of the grant date," May 22nd. In the event Mulligan is fired before the units are vested, they will vest in full. He was also awarded a more lucrative short term incentive opportunity, bumping it from 80 percent of his salary to 90 percent.