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Patlal
You ask too many questions



Registered: 10/09/10
Posts: 44,849
Loc: Ottawa
Last seen: 6 hours, 33 minutes
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CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... 1
#21163634 - 01/22/15 03:48 PM (9 years, 3 months ago) |
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I get that business is business, but this shit is just wrong... Especially since theguy failed miserably and cost the company something like 5 to 6 billion dollars.
Quote:
An interesting talking point has seized the interwebs today: The amount of money Target has set aside to pay its Canadian staff is slightly less than the money it paid out to one former employee: Its CEO.
Gregg Steinhafel took a total of $61 million U.S. from Target when he left the company last spring, according to Fortune's calculations. Meanwhile, the fund Target set up to pay employees as it winds down operations over the next four months is set at $56 million U.S. (That’s $70 million Canadian, at current exchange rates.)
Interestingly, Target’s money-losing foray into Canada was one of the top reasons cited for Steinhafel’s departure when he resigned last May, along with the retailer's infamous credit card data breach.
To be clear, Steinhafel’s actual severance package — the money he got just for handing in a letter of resignation — amounted to $15.9 million. But add in his deferred compensation (a kind of tax-saving retirement fund), his stock options and a pension that he got to keep, and Fortune calculates his total “walk-away” package at $61 million.
That number is actually kind of hard to pin down, thanks to changing stock prices and other variables. USA Today calculated a slightly lower number for Steinhafel’s departure, at $55 million, while Bloomberg calculated his retirement plans as being worth $47 million.
Regardless of the actual number, the scale of Steinhafel’s pay compared to the compensation for Target's entire Canadian staff is raising eyebrows online.
Many economists studying the roots of the rising income gap argue that inequality actually happens within companies — it’s the result of businesses constantly hiking pay for their top managers while holding down labour costs for the rest of the company.
In that context, Steinhafel’s massive payout is one singularly large contribution to the problem.
The gap between top execs and everyone else has been growing for decades. U.S. CEOs today typically earn 354 times as much as the average worker at their company, compared to just 46 times average worker pay thirty years ago.
In Canada, the CEO-to-worker pay ratio is lower, at 206 times average pay, but that’s still one of the largest pay gaps in the developed world. (In Britain it’s only 84.)
At the big-box retailers, the inequality is even larger: Steinhafel’s pay was 597 times the pay of the average Target employee, according to a 2013 ranking from PayScale.com. Only Walmart’s CEO, Michael T. Duke, made out better: He earned 1,034 times the average Walmart employee’s salary.
So if you want to know where rising inequality comes from, just take a look at your local big-box retailer.
Thoughts? Opinions? Comments?
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Ezuma
Gontish Wizard



Registered: 12/02/13
Posts: 8,423
Loc: Roke
Last seen: 1 year, 2 months
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: Patlal]
#21163639 - 01/22/15 03:49 PM (9 years, 3 months ago) |
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The world is a parody of itself. Or at least, humanity is
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Bodhi of Ankou
*alternate opinion blocks path*


Registered: 06/02/09
Posts: 24,778
Loc: Soviet Canukistan
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: Ezuma] 1
#21163654 - 01/22/15 03:54 PM (9 years, 3 months ago) |
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Nobody really needs that much money, wage caps are a perfectly reasonable response to a system slanted towards ever increasing disparity.
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mpd
Lammen Gorthaur



Registered: 10/22/12
Posts: 9,660
Loc: Mostly at home... Mostly....
Last seen: 8 years, 11 months
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: Bodhi of Ankou]
#21163676 - 01/22/15 04:00 PM (9 years, 3 months ago) |
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Good for him.
-------------------- There is no truer calling for mankind than that of true conservatism.
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weedist
Duke of Mania



Registered: 10/19/10
Posts: 1,380
Loc: TN, US
Last seen: 9 years, 2 months
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: mpd]
#21163686 - 01/22/15 04:03 PM (9 years, 3 months ago) |
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Every system is flawed in one way or another
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foodsgoodtoo
FPSnosurrender



Registered: 02/13/09
Posts: 3,720
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: weedist]
#21163718 - 01/22/15 04:10 PM (9 years, 3 months ago) |
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the prospecting employees did get to keep their set up packages.
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Konyap

Registered: 06/30/07
Posts: 33,945
Loc: Planet Piss
Last seen: 4 years, 6 months
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: foodsgoodtoo]
#21163766 - 01/22/15 04:30 PM (9 years, 3 months ago) |
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I bet he's got that cool grey hair all the other big shots have.
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,379
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: Patlal]
#21163863 - 01/22/15 04:51 PM (9 years, 3 months ago) |
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Don't agree with it, but I understand.
The guy probably made millions running a successful company. What does it cost to leave the security and comfort of a multi-million dollar a year company? For this guy, it was a guaranteed severance package of 61 mil, apparently.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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psi
TOAST N' JAM


Registered: 09/05/99
Posts: 31,613
Loc: 613
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: badchad] 1
#21164056 - 01/22/15 05:39 PM (9 years, 3 months ago) |
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Except he wasn't making them money, he led Target Canada to gigantic losses and total failure in under 2 years from the time they launched.
Edit: I guess he was in charge of US operations so maybe he was making them money overall.
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Bodhi of Ankou
*alternate opinion blocks path*


Registered: 06/02/09
Posts: 24,778
Loc: Soviet Canukistan
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Re: CEO of Target Canada (who failed) collected more in severance than all 17600 employees combined... [Re: badchad]
#21164796 - 01/22/15 08:27 PM (9 years, 3 months ago) |
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Quote:
badchad said: Don't agree with it, but I understand.
The guy probably made millions running a successful company. What does it cost to leave the security and comfort of a multi-million dollar a year company? For this guy, it was a guaranteed severance package of 61 mil, apparently.
Except he failed, completely and utterly. Why should he be entitled to any money at all for his gargantuan multi billion dollar fuckup? Its robbery pure and simple, and at numbers those large hes stiffing society as a whole.
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