Target Hires Former PepsiCo Executive Brian Cornell as New CEO

By Sarah Price - 31 Jul '14 12:28PM

Target Corporation, one of the biggest retail chains of America, announced Thursday that it had hired Brian Cornell, the former chief executive of PepsiCo Americas, as the new CEO of the company.

Cornell will start tenure in the top position in the company Aug 12. He will also presume the post of Chairman of the Board of Directors at Target.

"As we seek to aggressively move Target forward and establish the company as a top omnichannel retailer, we focused on identifying an extraordinary leader who could bring vision, focus and a wealth of experience to Target's transformation," Roxanne S. Austin, interim non-executive chair of the board said in a statement.

"The Board is confident that Brian's diverse and broad experience in retail and consumer products as well as his passion for leading high performing teams will propel Target forward," she added.

Gregg Steinhafel, former CEO of Target stepped down in May this year amid the security breach controversy the retail chain was stuck in. At that time, it was also announced that chief financial officer John Mulligan will act as interim CEO and Roxanne S. Austin will serve as interim non-executive chair of board until they find suitable replacements for the respective posts.

Cornell is the first outsider to be hired as CEO of Target. According to a Thursday securities filing, Cornell will reportedly receive a base salary of "$1.3 million, $3.75 million of stock in 2014, and up to $19.3 million in equity grants to compensate for what he's giving up by leaving PepsiCo," reports USA Today.

"I am honored and humbled to join Target as the first CEO hired from outside the company. I am committed to empowering this talented team to realize its full potential, lead change and strengthen the love guests have for this brand," Cornell added in the statement.

"As we create the Target of tomorrow, I will focus on our current business performance in both the U.S. and Canada and on how we accelerate our omnichannel transformation," he said.