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Target taps outsider as CEO for needed shakeup

Published on NewsOK Modified: July 31, 2014 at 3:02 pm •  Published: July 31, 2014
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The company's expansion into Canada, its first foray outside the U.S., has also been a disappointment. Analysts have said that Target botched its Canadian expansion by moving too aggressively. The company opened about 120 stores in the latest year and lost nearly $1 billion in the Canadian business.

In May, it fired the president of its Canadian operations, Tony Fisher, and replaced him with Mark Schindele, a company veteran.

Target must also work to restore faith among its investors. In June, at its annual shareholders meeting, the final shareholder vote tally showed a rise in dissent against key board members. All 10 nominees were elected to the board but the rise in votes against several directors shows how uneasy investors remain following the data breach.

Cornell, who is set to become Target's CEO on Aug. 12, will receive a base salary of $1.3 million, according to a filing with the Securities and Exchange Commission. He will be eligible for a bonus of up to $2 million and stock-based awards with a target value of $3.8 million, according to the filing. For fiscal 2015, the board also agreed to grant him stock-based awards with a target value of $9 million.

To make up compensation from PepsiCo that Cornell will be forfeiting, Target said it would pay him up to $19.3 million in equity grants, according to the filing. Any amount he is able to retain from PepsiCo will be subtracted from that amount.

The appointment was first reported by The Wall Street Journal.

In an interview posted on Target's corporate blog, Cornell said he has a "deep respect for the challenging retail environment" and noted his ties to Minnesota as a board member for Polaris Industries, a company based in Medina.

"I'm already shopping for a new warm coat for next winter," Cornell is quoted as saying.

Target shares finished at $61.38 per share on Wednesday. They have fallen 3 percent since the start of the 2014.