The company I selected for this activity is Target Corporation. Target
is an American department store chain headquartered in Minneapolis
Minnesota. It is the seventh largest retailer in the United States (U.S.)
and a component of the S&P 500 index. The company was originally
named Goodfellow Dry Goods in June 1902 before being renamed
the Dayton's Dry Goods Company in 1903 and later the Dayton
Company in 1910. The first Target store opened in Roseville,
Minnesota in 1962 while the parent company was renamed the
Dayton Corporation in 1967 (Target, n.d.).
According to Target’s 2021 annual report, the company offers price
vested stock options to their employees. Target offers this option to
certain team members that have met market conditions and becomes
exercisable the following year pending service condition
achievement. Essentially- the company gives its employees the right
to buy the stock at a specified price for a limited time under
predetermined guidelines (Target Annual Report, 2021). The value of
Target’s option contract in their 2021 annual statement was $210
million.
I have several different options to take if I were a retiree from Target
and received stock as part of my pension package benefit. I would
first assess the stock market and determine whether Target’s stock
prices are predicted to increase over time, if so, I would let the shares
grow their value. I could also use any dividends earned to buy more
shares into other companies to have a more diversified portfolio.
References
Target Annual Report 2021
. EDGAR. (n.d.). Retrieved January 4,
2023, from
https://www.sec.gov/ix?doc=%2FArchives%2Fedgar%2Fdata%2F27
419%2F000002741922000007%2Ftgt-20220129.htm
