Target CEO Gregg Steinhafel is overpaid

Categories: Business, Target
Thumbnail image for GreggSteinhafel.jpg
Steinhafel has enough money to breed giant Target-brand dogs.
Target CEO Gregg Steinhafel makes a lot of money -- too much, says the Minneapolis-St. Paul Business Journal.

Steinhafel's $24 million annual salary is the highest CEO salary in the state, according to new data released by the Business Journal. Great as that sounds, Steinhafel also made another, more dubious list, which ranked him the No. 4 most overpaid CEO in Minnesota.

Steinhafel's not being punished for having a big salary. In fact, he's not even that far ahead of second-place finisher George Buckley of 3M, who pulled in $23.7 million last year.

But with a "Company Performance" rank of 60th, and a salary rank of No. 1, the gap between what Steinhafel gets paid and how his company performs is dramatic -- almost as dramatic as how fast his salary has increased.

In 2008, his first year as CEO, Steinhafel got $13.3 million; last year that number inched up to $13.5 million; and in 2010 it nearly doubled to $24 million.

Joining Steinhafel and Buckley on the highest-paid list are US Bancorp CEO Richard Davis ($18.8 million last year), Ameriprise Financial's James Cracchiolo ($17.7 million) and General Mills Inc. CEO Ken Powell, who makes a paltry $12.3 million considering how much cereal that place turns out.

The top of the "most overpaid" list is mostly populated by the relatively unknown, but bringing up the back end are Best Buy's Brian Dunn at No.  6 and Supervalu CEO Craig Herckert in seventh.

supertarget.jpg
The only thing more "Super" is Steinhafel's stock options.
With a base pay of only $1.5 million, Steinhafel's salary came mostly in a pension plan bonus, an incentive bonus and $11.2 million in stock options, according to the Business Journal.

Among those people who won't be popping champagne to hear that Steinhafel's the best-paid CEO in Minnesota are the 1,000 Twin Cities jobs -- fully 9 percent of the staff -- that Target Corp. cut in early 2009, as the recession set in. At the time, Steinhafel sounded a morose note.

"We are clearly operating in an unprecedented economic environment that requires us to make some extremely difficult decisions to ensure Target remains competitive over the long-term," he said.

Now, Greg Steinhafel has his very own blissful "unprecedented economic environment." 

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19 comments
salih48
salih48

I'm working for 6 years I hope someday   Undercover Boss 

chuckradivojevic
chuckradivojevic

I've been with target over 3 years the "best company ever" as they call themselves has only given me a grand total of a 52 cent pay increase and a quarter of that was due to a store transfer. I'd like to see that cunt live on what the people doing all the work just to make him rich live on

Stawbet685
Stawbet685

While Steinhafel is reaping in the bucks, sales floor team members struggle under the weight of low pay for some very hard work! Their annual pay increases are a joke! My increase was just 1.5 percent which amounted to 14 cents. In the meantime, the company sponsors both Indy cars and NASCAR racing cars, urges employees to donate some of our pay to United Way yet they are totally uncharitable where it's most important which is with their own employees. My store can't hold on to good help! And if I were further from retirement, I would've walked out long ago. Steinhafel needs a reality check! How about going on Undercover Boss!

Waaaaahhhh
Waaaaahhhh

It's called retail. Don't like it? Get an education that qualifies you for a better paying gig,

Grahamwoods
Grahamwoods

it is very nice that MR.steinhalef makes 25m a year..i wonder what he woud say to getting 15 cents a hour rise.most so call target team mambers make about 50 cents over min wage and are treted like pack mulls.target knows that most people who are the hard working reliable at this point have no were to go right now so thay push and have no care for the employee..i am not sure about thr rest of the us but here in north las veags target on grag rd it is very bad i wish MR.steinhalef who help the again so called team all we ask is for a nice place to work and not feel as if we say anythink our hours well be cut more and if hours are going to be cut it should be for all ...................thank you

Maggie
Maggie

As a Target team member, I would love to see Mr. Steinhafel come into our Target store and do my job on a daily basis. While my hours got cut from 30 (I'm a full-time college student) to 8 ... he's making THAT much money. We are well over sales in our Target store, as well as green in almost all of our departments, yet our hours are still getting cut. I was the only team member on the softlines floor the other night. Not only was I expected to zone the entire department while my ETL and TL sat in the HR office and chatted, but I was going up to do back-up (we did $20,000 over sales that night in particular), helping with carts, assisting the other two team members in hardlines with calls, and assisting the electronics boat. Needless to say, I worked from 3:30 - 12:30 that night, add on an hour drive home, and an 8 a.m. class. I'm thoroughly disgusted with this article.

Stillstanding
Stillstanding

Funny how so many Target employees get the axe just before they get close to collecting their retirement, so that money just goes back into the CEO's pockets or his henchmen company Sedgwick.

Lindseysegura
Lindseysegura

Lets not forget the Human Resource staff at Target store in Pasadena Michele Genesta who lacks consideration and respect for others especially non -profit organizations who need help.  Target is greedy and doesn't care to even respond respectfully to others.

Sekhmet1
Sekhmet1

Thanks for the layoff, Gregg.

Mn Voter
Mn Voter

This is a good reason to impose a 6% sales tax on clothing & food. We can then eliminate the state income tax on everyone up to $250,000.

SWAGDAFI
SWAGDAFI

As a current Target Team Member this doesn't surprise me one bit. I love seeing how this company scrambles to save money yet spends lavishly on things that are completely unnecessary, such as iPads for all District Team Leaders and above. Glad they're cutting hours and benefits, for example the mentally challenged cart attendant at my store has had to scramble to increase his hours so that he can still receive insurance as management is attempting to schedule him one hour below the  minimum to receive health insurance.

Greed Over People strikes again.

jan
jan

And Target went ahead and moved a large chunk of their production of advertising out of town and plenty of local businesses are hurting because of it. Way to support Mpls Target!

Amanda_289_live
Amanda_289_live

Completely relate to your story! TM's work their butts off while (in my case) the LODs eat all day in their office and use the company phones to call their husbands and wives.There seems to be a trend....the more you're paid the more lazy you are. 

Zooloo
Zooloo

As the saying goes.....most people can't afford to work at Target. Hourly wage(s) to low.  True, people have to scramble to get shifts too. However, I'm sure Greg sleeps like a baby at night.

zerofor
zerofor

Yes! We must focus our taxation on people who spend the largest percentage of their income on food and clothing, rather than extra houses and luxury goods!

Michelle Bachmann
Michelle Bachmann

This has nothing to do with the article.   Also, your idea is stupid.     I think its because you are a very stupid person. 

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