After donating $1m to Trump and axing DEI, Target CEO watches his salary get chopped in half by tariffs and angry shoppers
Even as Target posted improved earnings in certain quarters, CEO Brian Cornell’s paycheck didn’t reflect a win. Instead, it got slashed — again — thanks to weak shareholder returns, tumbling equity awards, and intensifying backlash from both political critics and frustrated consumers.
Cornell, who has led the Minneapolis-based retail chain since 2014, received $9.9 million in total compensation for 2024, a staggering 87% drop from his 2020 peak of $77.5 million. This latest figure also marks a 45% decline from 2023, making it his lowest payout since 2016.
A big reason? Plunging value of long-term equity awards, which once made up a sizable portion of executive compensation. But the stock didn’t deliver — and neither did consumer sentiment.
“Plaintiffs are in communication with numerous others who referred voters to sign the America PAC petition, who are likewise frustrated that they did not receive full payments for their referrals,” the suit reads.
Cornell’s salary itself held steady at $1.4 million, unchanged since 2019. But other income sources collapsed. In 2024, he received a bonus of $785,400, non-equity incentive pay of $1,538,320, and $596,391 in other compensation. Meanwhile, stock vesting brought in $5,538,869 — far below previous years.
Target’s CEO pay ratio now stands at 753 to 1, with median employee pay at $27,090.
What’s behind the crash in compensation? A storm of bad news. The retailer has faced consumer boycotts, political scrutiny, and financial uncertainty. After Cornell publicly donated $1 million to a Trump-aligned PAC and oversaw cuts to DEI (Diversity, Equity & Inclusion) programs, Target was thrust deeper into the political fire.
The fiscal outlook hasn’t helped. The company’s 2024 shareholder return was just 2.2%, and guidance for 2025 remains cautious amid tariffs and shaky demand.
Target’s executive compensation model rewards medium-term performance measured over three years. For the 2022–2024 period, the company fell short on goals related to sales, earnings, and return on invested capital, achieving just 61.6% of the targeted benchmarks.
On top of that, Target ranked only 14th out of 20 among its peer companies when it came to shareholder returns — another hit to long-term equity-based rewards.
Cornell realized $5.5 million from his performance-based stock awards in 2024. That’s down sharply from the $13.6 million he earned in 2023.
While Target’s internal proxy filings show a steady increase in Cornell’s awarded compensation each year, those numbers are based on grant-date values — a rosy estimate assuming strong performance and stock appreciation.
But when performance falters and stock values lag — as they have in 2023 and 2024 — those awards fall flat in real terms. The Star Tribune’s calculation reflects realized pay, showing what executives actually took home once stocks vested.
“Target fell shy of annual performance targets in 2023 and missed by a wider margin in 2024.”
So while Cornell might still carry the CEO title, the bonus checks and stock windfalls that used to come with it aren’t what they used to be — especially in a year where shoppers pushed back, investors stayed cautious, and politics added fuel to the fire.
Sources:
- https://www.startribune.com/target-ceo-brian-cornell-pay-drops-realized-compensation-2024/600374810/
- https://www.cnbc.com/2024/11/06/target-dei-cuts-backlash.html
- https://www.businessinsider.com/target-ceo-donation-trump-compensation-dei-pay-ratio-2025
