Target Corp. announced Thursday that Jim Lee, an executive who has climbed the ranks over 26 years at PepsiCo, will be its new CFO.
Lee, 50, is set to succeed Target veteran Michael Fiddelke effective this month. Fiddelke is also chief operating officer and has been in both roles since February.
CEO and chairman Brian Cornell called Lee “a successful leader in finance and strategy” in a statement and cited his key role as the company focuses on a “roadmap for growth.”
Lee joins Target at a pivotal time. The Minneapolis-based retailer eked out a positive earnings report in August for the first time in more than a year. It has struggled compared to competitors Walmart and Costco as customers increasingly seek lower prices on staples and show restraint for nonessential items, such as apparel and home goods.
Investors reacted positively and the company’s stock closed up 2.89% at $156.49.
“Lee’s management background should position him well to support Target’s efforts to serve the consumer across the business in national and owned brands, while growing sales profitably,” wrote Joseph Feldman, senior research analyst at Telsey Advisory Group, in a research note.
As executive vice president and CFO, Lee receives a $2.2 million signing bonus, which must be repaid if he leaves in the next three years, and $6.95 million of stock, to be paid in annual increments through 2027. His salary will be $850,000, plus cash and stock incentives for a target payout of $1.5 million, according to documents filed with the SEC.
At PepsiCo, Lee worked in strategy and finance in Hong Kong, Istanbul and Moscow, before returning to North America in positions that included chief strategy and transformation officer. He was most recently deputy chief financial officer.
Target’s stable C-suite has been a bright spot for investors in spite of the company’s recent struggles. Cornell has been CEO for two decades, a stay that extended beyond the pandemic when the board of directors scrapped a rule that would have required him to retire at 65.
“You can never count out Brian Cornell,” Scott Mushkin, founder and managing partner of R5 Capital said in an interview before the CFO announcement. “The guy proved himself to be resilient and, over time, a strong executive that really can figure out how to bring people in that help him reinvent the company.”