Posted by & filed under Advanced Accounting, Ethics, Executive Compensation.

Description: In yet another story on Target’s decision to leave Canada, regulatory filings have revealed that a number of executives and board members received in total 113,298  performance share units on the same day the board voted to end the Canadian experiment. Although the timing of the compensation appears to be consistent with Target’s established practice, a York University law professor stated the timing “does not pass the smell test from a governance point of view”. Given that Target’s share price has continued to rise since the announcement, some may question the ‘optics’ of the timing.

Source: Globe and Mail.com

Date:  February 13, 2015

Link:  http://www.theglobeandmail.com/report-on-business/target-execs-granted-share-units-one-day-before-canada-retreat/article22998853/

Discussion Points:

1) What do you think the Target board should have done regarding the timing of this compensation and the announcement of the Canadian decision?

2) How would Target have to record the issue of performance share units given as compensation to executives and board members?

3) Do you think this issue will cause a significant number of Target shareholders to vote “No” when they have their “say on pay” vote?

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