Kiera Fernandez
Chief Community and Stakeholder Engagement Officer at TGT
Executive
About Kiera Fernandez
Kiera Fernandez is Target’s executive vice president and chief community and stakeholder engagement officer; she leads external stakeholder engagement, community and philanthropic efforts (including the Target Foundation) and enables Target’s enterprise strategy through belonging initiatives . She began her Target career in 2001 as an executive team leader in Arizona and has held HR leadership roles across finance, operations, and global supply chain and logistics . She earned a Master of Arts in Human Resource Management from St. Mary’s University of Minnesota and is a member of the Executive Leadership Council (ELC) . Company performance highlights relevant to incentive design: Target’s operating margin improved to 5.3% in 2023 from 3.5% in 2022, driven by inventory discipline and cost efficiencies .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Target Corporation | Executive Team Leader (Store) | 2001 | Frontline leadership and store operations foundation |
| Target Corporation | VP HR – Supply Chain / Chief Diversity & Inclusion Officer | 2021 | Led enterprise DE&I strategy and HR in supply chain |
| Target Corporation | SVP Talent & Change and Chief Diversity & Inclusion Officer | 2023 | Led Talent & Change, enterprise DE&I strategy, L&D and team experience |
| Target Corporation | EVP, Chief Community & Stakeholder Engagement Officer | 2025–present | Leads external stakeholder engagement, community and philanthropy; enables enterprise strategy via belonging |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Greater Twin Cities United Way | Board of Directors | Not disclosed | Community engagement and philanthropy governance |
| Institute for Corporate Productivity (i4cp) | Board of Directors | Not disclosed | Human capital benchmarking and insights |
| Executive Leadership Council (ELC) | Member | 2023–present | Executive network focused on leadership and DEI |
Fixed Compensation
| Item | Policy / Company Practice | Applies To |
|---|---|---|
| Base salary | Not disclosed for Fernandez; Target discloses NEO salaries in proxy (Fernandez is not a NEO) | NEOs (context) |
| Annual bonus (STIP) cap | Max payout generally 4x salary for CEO; 2x salary for Non-CEO NEOs | NEOs (context) |
| Ownership guidelines | 7x base salary for CEO; 3x base for Non-CEO NEOs; 5x annual cash retainer for directors | CEO, Non-CEO NEOs, Board |
| Hedging/Pledging | NEOs and directors prohibited from hedging or pledging Target stock | NEOs, Board |
| Clawbacks | Recovery policies for incentive cash, equity comp, and severance if intentional misconduct causes material harm or restatement; separate SEC/NYSE clawback for excess incentive-based comp | Covered officers |
| Employment contracts | Target does not use employment contracts with NEOs | NEOs |
Performance Compensation
| Component | Metric | Weighting | Target/Structure | Payout Mechanics | Vesting/Timing |
|---|---|---|---|---|---|
| Annual STIP (financial) | Incentive Operating Income; Sales | 67% | Targets set annually; must be employed at payout unless death/disability/retirement eligibility | Paid per achievement vs targets; overall plan max 2x salary for Non-CEO NEOs | Typically paid following fiscal year close |
| Annual STIP (team scorecard) | Team scorecard (non-financial) | 33% | Threshold/goal/max levels set; complements financial metrics | Combined with financial component for total payout | Paid with STIP |
| Long-Term PSUs | Relative performance vs retail peer group and company measures | N/A | 3-year performance period; payout varies by attainment (threshold/target/maximum) | Paid within 90 days after Committee certifies results post-period | 3-year performance; dividend equivalents accrue and convert if vest |
| Long-Term PBRSUs | TSR-based performance over defined period | N/A | Payout varies by TSR results; performance levels defined in CD&A | Paid within 90 days after certification | Performance-based vesting; dividend equivalents accrue and convert if vest |
| RSUs (service) | Tenure-based service vesting | N/A | Typical new-hire examples: 3 annual tranches or 5 annual tranches depending role | Converts to common shares 1:1 upon vest | Annual vesting; accelerated upon death/disability per award terms |
Equity Ownership & Alignment
| Topic | Detail |
|---|---|
| Beneficial ownership context | All current directors and executive officers as a group owned less than 1% of outstanding shares as of 2023/2024 snapshots |
| Stock ownership guidelines | CEO: 7x salary; Non-CEO NEOs: 3x salary; Directors: 5x annual cash retainer |
| Hedging & pledging | Prohibited for NEOs and directors |
| Change-in-control treatment | Double-trigger requirement (CoC plus involuntary termination or good reason) for equity vesting on awards granted Jan 2015 or later |
| Post-employment covenants | PSUs/PBRSUs subject to post-employment covenants; payments generally within 90 days after certification post-period |
Employment Terms
| Provision | Company Practice / Terms |
|---|---|
| Employment contract | No employment contracts for NEOs |
| Change-in-control definition | CoC events include 50% Board turnover not nominated by incumbents; 30%+ stock acquisition; merger with <60% ownership by prior shareholders; liquidation plan approval |
| CoC vesting | Double trigger for awards granted Jan 2015 or later; no automatic acceleration on CoC absent qualifying termination |
| Severance multiples | Not specifically disclosed in retrieved materials for Fernandez; NEO severance multiples not shown in cited chunks (skip if not disclosed) |
| Clawbacks | Robust clawbacks covering incentive cash, equity, and severance upon intentional misconduct causing material harm/restatement; SEC/NYSE excess incentive-based comp clawback policy |
| Tax gross-ups | No tax gross-ups provided |
Performance & Track Record
| Initiative/Outcome | Evidence |
|---|---|
| 2023 profitability rebuild (macro context for incentives) | Operating margin rate rose to 5.3% from 3.5% in 2022; driven by inventory discipline, efficiency, lower freight/supply chain/digital fulfillment costs |
| Community leadership – Feeding America | Target donated $500,000 to Feeding America; Fernandez emphasized commitment to supporting communities across 2,000 locations |
| Community leadership – Special Olympics USA Games 2026 | Target became Platinum Partner and Official Tennis sponsor; Fernandez highlighted inclusivity and volunteerism |
Compensation Committee & Governance Context
- Independent compensation consultant: Semler Brossy retained by the Compensation & Human Capital Management Committee .
- Pay-for-performance: Majority of compensation tied to long-term incentives linked to stock price and relative performance versus retail peers; Merchandise Sales is a selected measure in STIP and PSU design .
- Annual say-on-pay: Target conducts annual advisory vote on executive compensation .
Investment Implications
- Alignment: Prohibitions on hedging/pledging and robust clawbacks, combined with ownership guidelines for senior leaders, indicate strong alignment of equity incentives with shareholder interests .
- Retention risk: Long-duration PSUs/PBRSUs and RSUs with multi-year vesting, plus post-employment covenants, suggest sustained retention incentives for senior executives overseeing stakeholder/community strategy; payout timing within 90 days post-certification reduces short-term trading pressure tied to vest dates .
- Performance linkage: Company’s incentive framework emphasizes Merchandise Sales, operating income, and TSR-based outcomes, anchoring payouts to core retail profitability drivers; the 2023 margin recovery provides constructive backdrop for performance-based awards .
- Change-in-control economics: Double-trigger construction limits windfalls and aligns vesting outcomes with actual employment disruption, reducing governance risk from automatic acceleration .
Note: Target’s proxies disclose detailed compensation amounts for Named Executive Officers (NEOs). Kiera Fernandez is an executive officer but not disclosed as a NEO in the cited proxies; her specific salary, bonus, grants, and ownership totals are not itemized in these filings. The policies above govern senior executive pay structures and equity treatment at Target .