Doug McMillon walked away from Walmart with $29.2 million in his final year. Brian Cornell took home $21.8 million from Target. Even Kroger’s interim leader cleared $14 million. These figures come as many American households report difficulty affording basic food items.
The numbers reflect standard practice in large retail. Boards tie most compensation to stock awards and performance incentives. Yet the scale stands out. A single executive’s package can exceed what hundreds of store associates earn in a lifetime. Executive Rewards Outpace Store-Level Pay by Wide Margin
McMillon’s 2025 haul, detailed in Walmart’s proxy filing, consisted of a $1.5 million base salary plus more than $21 million in stock awards and additional incentive pay. He retired at the end of January 2026. His successor, John Furner, received $27.3 million in the same period, according to Grocery Dive.
Cornell’s last full year as Target chief executive delivered $21.8 million. Stock awards rose nearly $2.5 million even as his bonus fell more than 40 percent. The company’s proxy showed the total climbed from the prior year despite mixed scorecard results. Michael Fiddelke, who replaced him as CEO in February 2026, earned $9.6 million. Target disclosed these amounts in its April 2026 filing.
At Kroger the picture shifted quickly. Rodney McMullen, ousted in March 2025 after a board investigation into personal conduct, received $15.6 million for fiscal 2024. Ron Sargent, brought in as interim chief, collected just over $14 million for 2025. That package featured nearly $4 million in salary and $10 million in stock awards. New CEO Greg Foran, a former Walmart U.S. president, stands to receive a target package worth at least $17 million annually, including a $1.5 million base and up to $12 million in long-term incentives, per a February 2026 SEC filing reported by Reuters.
These payouts arrive against a backdrop of sustained pressure on household budgets. Grocery prices have climbed 32 percent since 2019. Surveys show half of Americans spending more on food than they want, with nearly half saying it is hard to afford. Six in 10 expressed worry about covering grocery costs in the past month. The Yahoo Finance article from late June 2026 captured this tension directly.
But compensation committees defend the structure. They argue equity-heavy pay aligns leaders with shareholders. When stock performs, executives benefit. When it does not, so do they. Walmart shares rose steadily in recent years. Target faced softer traffic yet still granted Cornell a larger equity grant. Kroger navigated an aborted Albertsons merger and leadership upheaval. Boards adjust targets accordingly.
Pay ratios illustrate the distance. Walmart’s AFL-CIO Paywatch data for 2024 placed McMillon’s compensation at roughly 930 times the median associate’s pay. Target’s ratio sat near 753 to 1. Kroger reported a 457-to-1 ratio for McMullen’s final full year. Median employee compensation at these firms typically falls between $25,000 and $36,000. One analysis found that McMillon could out-earn the average U.S. worker’s annual salary in less than 20 hours.
Industry-wide the pattern holds. Susan Morris at Albertsons earned $16.8 million in her first year as CEO, more than double her prior compensation as chief operating officer. That included $1.3 million salary, $2 million bonus and over $11 million in stock. Jack Sinclair at Sprouts pulled in $11.5 million. Even smaller operators like Weis Markets and Publix paid their leaders several million each. The tenth-highest grocery CEO still collected about $4 million, per the June 2026 Yahoo Finance report.
Critics point to the optics. While executives fly on corporate aircraft for security and receive deferred compensation that grows over decades, cashiers and stockers face thin margins and limited raises. Union campaigns and shareholder proposals regularly challenge these packages. Yet approval rates remain high. Investors accept the logic that talented operators drive billions in revenue and thousands of jobs.
Recent leadership turnover adds another layer. McMillon’s exit after 14 years at the top, Cornell’s move to executive chairman, McMullen’s abrupt departure. Boards must attract proven talent. Foran’s hire from Walmart’s ranks signals confidence that scale and operational expertise justify premium pay. His package exceeds McMullen’s recent totals.
Stock awards dominate because they tie reward to long-term value creation. A grant valued at $20 million today may deliver far more or far less depending on future performance. Committees stress this variable nature. Realized pay can differ sharply from reported grant-date fair value. Still, the headline totals fuel debate every proxy season.
Broader economic data reinforces the contrast. Global CEO pay rose 11 percent in real terms in 2025 while average worker wages grew 0.5 percent, according to an Oxfam and ITUC analysis released in April 2026. In the U.S. the gap proved even wider. CEO compensation at S&P 500 companies averaged nearly $19 million. The Economic Policy Institute tracked a 1,094 percent rise in top CEO pay since 1978 against 26 percent for typical workers.
Grocery stands as a particularly visible sector. Everyone buys food. Price increases hit headlines. Executives appear in annual meetings defending strategy while their compensation disclosures circulate on social media. The result is persistent scrutiny.
Boards show little sign of pulling back. They adjust peer groups, tweak performance metrics, add clawback provisions. The core model stays intact. Attract top talent. Align with shareholders. Reward results that lift the stock. For McMillon, Cornell and others, 2025 delivered strong results on paper.
Whether that formula satisfies employees, customers and policymakers remains an open question. As one grocery economist observed in the Yahoo Finance piece, the disconnect between executive reward and household strain is hard to ignore. Shoppers feel the pinch at checkout. Executives see it reflected in their account statements.
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