Target to spend $2 B on bonuses for employees

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Target to spend $2 B on bonuses for employees

Potrivit to a proxy report by the retailer, Cornell received a total compensation package of around $9.8 million, an increase of about 4.3% year over year.Cornell's base salary remained unchanged from the previous year at $1.4 million.However, he earned a $1.12 million incentive bonus on the company's sales and income performance and $4.48 million for a non-equity incentive plan.

The majority of Cornell's compensation came from collective equity awards which were either bought or exercised in 2020, which had a combined value of $70 million.About $40.8 million came from restricted stocks that were exercised in 2020, while another $29.2 million came from options that were restricted.

Cornell's salaries is now 805 times the median Target employee, which increased to $24,535 in fiscal 2020 by 6.3%.

Last month, Target reported a 66% increase in the fourth quarter to adjusted net income of $1.38 billion or an adjusted $2.67 per share.

The company's revenue for the quarter rose to $28.34 billion to 21%.Same-day services, which include order pick-up, drive up and shipt, were increased by 212% and helped boost same-store sales by 21%.Comparable traffic grew 6% and average ticket size by 13% increased.

For the whole year, sales grew by more than $15 billion—more than combined the 11 previous years combined.

Target did not lay off, furlough or reduce compensation of its employees through the year.Instead, the company spent $ 1 billion more than the annual budget over five rounds of bonuses, new and increased benefits and health and safety investments.The company also accelerated its move up to $15 an hour starting wage for employees.

Target has invested a total of $200 million in associates through bonuses.In January, all the executive team members within Target's stores, distribution centers, field offices and headquarters will receive a $500 bonus, while all store directors, employee team leaders and salaried distribution center leaders will receive a bonus between $1,000-$2,000.

The company first didled out bonuses to store leads in April, followed by a $200 bonus for all hourly full and part time employees in stores and distribution centers in July.The company offered a performance bonus for all the store directors, Executive Team leaders and salaried distribution center leaders that same month.

In October, the company announced that more than 350,000 frontline workers will receive a $200 bonus by early November, an investment of over $70 million before the holidays.

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