Fred Hand
KOHLSAbout Fred Hand
Senior Executive Vice President, Director of Stores at Kohl’s (KSS) and a Named Executive Officer (NEO). Compensation is structured under Kohl’s pay-for-performance framework, with short-term AIP tied to Merchandise Sales (60%) and Operating Margin (40%), and long-term PSUs measured on three-year cumulative Net Sales (50%) and Operating Margin (50%) with a ±25% TSR modifier . Company performance context: fiscal 2024 net sales declined 7.2%, operating margin was 2.7%, and SG&A decreased 3.7%, underpinning zero AIP payout and no 2022–2024 PSU vesting for eligible NEOs .
Past Roles
No prior roles disclosed in the proxy. Skip.
External Roles
No external directorships disclosed in the proxy. Skip.
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $309,896 | $895,833 |
| Annual Bonus Paid ($) | $525,000 | $0 (no AIP award earned) |
| “All Other Compensation” ($) | $36,389 | $125,012 (perqs detailed below) |
| AIP Target (% of Salary) | 130% | 130% |
| AIP Threshold / Maximum (% of Salary) | 32.5% / 260% | 32.5% / 260% |
Perquisites (2024 examples): personal financial advisory ($20,000), automobile allowance ($18,000), supplemental healthcare coverage ($25,000), aircraft usage ($32,716); plus insurance and DC plan contributions, totaling $125,012 .
Performance Compensation
Annual Incentive Plan (AIP) – Fiscal 2024
| Metric | Weight | Target | Actual | Payout |
|---|---|---|---|---|
| Merchandise Sales | 60% | Company-set goal | $15.305B | 0% (below Threshold) |
| Operating Margin | 40% | Company-set goal | 3.1% (adjusted) | 0% (below Threshold) |
| Overall AIP Outcome | — | — | — | 0% for NEOs |
Long-Term Incentive Plan (LTIP) – 2024 Grants
| Component | Grant Date | Measure(s) | Units (Threshold / Target / Max) | Grant Date Fair Value ($) |
|---|---|---|---|---|
| PSUs | 3/25/2024 | Net Sales 50%; Operating Margin 50%; TSR ±25% | 15,369 / 40,984 / 102,460 | $1,200,012 |
| RSUs | 3/25/2024 | Time-based vesting (four-year schedule) | 30,211 | $799,987 |
Program design notes:
- LTIP mix: 60% PSUs / 40% RSUs for Hand in 2024 (others 65%/35%) .
- Performance Index modifier: Threshold payout possible if Kohl’s Net Sales and/or Net Income exceed weighted peer index, even if internal goals are missed .
Historical LTIP outcome (context): PSUs covering 2022–2024 paid 0% based on cumulative performance below Threshold; TSR modifier had no effect since financial goals were not met (Hand did not participate in the 2022 grant cycle) .
Equity Ownership & Alignment
Beneficial Ownership and Guidelines
| Item | Detail |
|---|---|
| Beneficial Ownership (shares) | 51,134 shares; percent of class: * (<1%) |
| Shares Outstanding (record date) | 111,323,544 (as of 3/12/2025) |
| Ownership Guidelines | Senior EVP: 3× base salary; 5-year compliance window |
| Compliance Status | Executive officers verified in compliance in 2024 |
| Hedging/Pledging | Hedging and pledging of Kohl’s securities prohibited |
| Stock Options | No options outstanding; company not granting options recently |
Vested vs Unvested Equity Detail (as of 2/1/2025; $13.21/share reference)
| Award Type | Units | Vesting / Performance Schedule | Market Value ($) |
|---|---|---|---|
| RSUs/Stock Awards (unvested) | 85,263 | Oct 13, 2025 & 2026 (prior award) | $1,126,324 |
| RSUs (unvested) | 12,791 | 25% annually, Oct 13, 2025–2027 | $168,969 |
| RSUs (unvested) | 32,742 | 25% annually, Mar 25, 2025–2028 | $432,522 |
| PSUs (2023–2025, unearned) | 23,135 | Performance period to Mar 2026 | $305,613 |
| PSUs (2024–2026, unearned) | 16,657 | Performance period to Mar 2027 | $220,039 |
Implications: Significant RSU tranches vest on Oct 13, 2025 and Mar 25, 2025–2028, creating predictable vest-related sell/withhold events. PSU outcomes remain contingent on 3-year performance and TSR .
Employment Terms
| Provision | Economics / Terms |
|---|---|
| Severance (no change-of-control) | 2× base salary, reduced by compensation from new employment; paid over 2 years |
| Severance (change-of-control, double trigger) | 2× (base salary, at least as high as pre-CoC) + average AIP bonus over prior 3 fiscal years; lump sum within 60 days |
| Health Care Continuation | Up to 2 years COBRA contribution equal to company cost |
| Outplacement | Up to $20,000 |
| Non-compete | 1 year post-termination |
| Retirement Eligibility | Age 60 + 5 years’ service (for Hand) |
| Clawback | Executive Officer Compensation Recovery Policy adopted in 2023 |
| Tax Gross-ups | None provided |
Potential Payments Illustration (as of 2/1/2025; $13.21/share)
| Scenario | Severance ($) | Health Care ($) | Outplacement ($) | Accelerated RSUs ($) | Accelerated PSUs ($) | Total ($) |
|---|---|---|---|---|---|---|
| Involuntary Termination (no CoC) | 1,800,000 | 21,323 | 20,000 | 1,454,095 | — | 3,295,417 |
| Involuntary or Good Reason (post-CoC) | 2,386,280 | 21,323 | 20,000 | 1,727,800 | 892,367 (Target basis) | 5,047,769 |
| Disability | 450,000 | — | — | 1,727,800 | 525,646 (performance-based calc) | 2,703,446 |
| Death | 450,000 | — | — | 1,727,800 | 892,367 (Target basis) | 3,070,167 |
Notes: Pro rata AIP bonus eligibility applies for death/disability and certain terminations; cash severance capped by policy at ≤2.99× salary+target bonus; no tax gross-ups .
Compensation Structure Analysis
- Equity-heavy pay mix with time-based RSUs rising to support retention amid role expansion; Hand’s 2024 LTIP split was 60% PSUs / 40% RSUs versus peers at 65%/35% .
- Increased AIP rigor (Max lifted to 200% of target) but 2024 payout was 0% as metrics missed Threshold, reinforcing pay-for-performance alignment .
- Company suspended option grants; long-term equity delivered via PSUs and RSUs, limiting repricing risks .
- Say‑on‑pay support was >92% in 2024, indicating broad investor alignment with program design .
Equity Ownership & Alignment (Additional)
- No evidence of pledging; policy prohibits hedging and pledging for associates, executives, and Directors .
- Beneficial ownership is modest relative to float, but combined with unvested RSUs creates meaningful holding power and retention incentives .
Performance & Track Record
- 2024 corporate outcomes: net sales −7.2%, operating margin 2.7%; SG&A −3.7%, cash flow from operations $648M; actions included store closures and footprint optimization, supporting margin progress but not sufficient for AIP payout .
- Q2 2025: operating income and EPS improved, inventory reduced, and legal settlement gain recorded; directional improvements may aid 2024–2026 PSU trajectory if sustained .
Governance, Policies, and Committee Oversight
- Compensation Committee chaired by Jonas Prising; employs independent consultant Semler Brossy; annual risk assessment found no material risk from comp plans .
- Ownership guidelines actively monitored; executives confirmed in compliance in 2024 .
Investment Implications
- Near-term vesting calendar (Oct 13, 2025; Mar 25 annually through 2028) implies predictable sell/withholding flows; monitor 10b5‑1 plans and vest‑date trading volumes for signals of supply .
- High bar for AIP/PSU payouts ties upside to sustained improvements in sales and margin; PSU TSR modifier may amplify outcomes vs retail peers if execution strengthens .
- Retention risk appears contained: strong severance/change-of-control protections (double trigger), non‑compete, clawback, and verified ownership compliance; no tax gross‑ups or option repricings (governance positive) .
- Say‑on‑pay support (>92%) reduces governance overhang; watch for future changes in metric weights/mix (e.g., RSU share) that could signal shifts in risk/retention posture .
Citations: All facts and figures are drawn from Kohl’s DEF 14A (Mar 28, 2025) and 10‑Q/8‑K filings. Specific references: **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:42]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:54]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:55]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:56]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:45]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:57]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:62]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:63]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:87]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:5]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:60]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:68]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:72]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:76]** **[885639_0000950170-25-113028_kss-20250802.htm:13]** **[885639_0000950170-25-113028_kss-20250802.htm:17]** **[885639_0001193125-25-189105_d42370dex991.htm:0]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:30]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:49]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:59]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:12]** **[885639_0001558370-25-004025_kss-20250514xdef14a.htm:40]**.