Target’s CEO Gets His Pay Slashed

Well it’s kind of uderstandable that if a company doesn’t do well, that it’s CEO should get a pay cut.

Target’s CEO Brian Cornell has taken a cut in his compensation after the retailer came up short meeting its financial goals last year.

According to document filed with regulators, Cornell’s salary now at $11.3 million, which includes cash and stock compensation) is now nearly a third of what he used to get. When Cornell first joined the team, his total compensation including stock and and cash was $28.2 million.

The document was filed just two months after Target reported disappointing results and saw its stock crumble to lows it hasn’t seen in two and a half years.

Last year Target missed its 2016 incentive EBIT goal of $5.74 billion by $623 million. It also missed its adjusted sales target of $71.62 billion by $2.13 billion.

For the fourth quarter, Target’s EPS was $1.45 a share, falling short of the $1.51 that Thomson Reuters analysts expected. Revenue at $20.69 billion also fell short of the $20.7 billion expected by analysts.

“Our fourth-quarter results reflect the impact of rapidly changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores,” Cornell said in a statement.

Looking ahead, the retailer also then admitted that its estimates for 2017 were too high. The company now expects to earn $3.80 to $4.20 a share this year. Wall Street’s expectation called for $5.37 a share.

Disclaimer: We have no position in Target Corporation (NYSE: TGT) and have not been compensated for this article.