Ernie Herrman is the current Chief Executive Officer (CEO) and President of the TJX Companies, Inc. He was elected to the position of CEO in late 2015, and began the position in January of 2016 after Carol Meyrowitz stepped down. However, he has been President of the company since 2011. He began his work at the company in 1989 as a buyer and has climbed his way towards the top. He has been on the Board since October 2015. Herrmann owns 390,000 shares of TJX stock, which is values $27.6 million today. He currently makes just under $5,000,000 in cash salary, and then also receives over $14,000,000 in other equity. There is a quart below that better illustrates his annual compensation.
Board of Directors
The TJX Companies, Inc has a board of directors made up of eleven financial professionals. The entire purpose of the Board of Directors is to make choices based on the long-term interests of stockowners. The leader of the board of directors is the Executive Chairman on the Board, which can be filled by an independent director, or a current or former employee of the company. The current Executive Chairman of the Board is Carol Meyrowitz, who was the CEO of the TJX Companies, Inc. from 2007 to 2016. Once she stepped down, she assumed the role of Executive Chairman.
The company’s current CEO does have a spot on the board of directors. The TJX Companies Inc.’s current CEO and President is Ernie Herrman, who is Director of the board of directors and has been since 2015. Herrmann and Meyrowitz are the only two board members who have been recently employed by the company. Herrman was elected to the position of CEO and President after Meyrowitz stepped down in January of 2016.
Fellow board members include Independent Directors: Zein Abdalla, José B. Alvarez, Alan M. Bennett, David T. Ching, Michael F. Hines, Amy B. Lane, Jackwyn Nemerov, John F. O'Brien, and Willow B. Shire. The board members are elected or re-elected on an annual basis through a voting process completed by stockholders. The TJX Companies, Inc. also stress the importance of diversity on their board. They believe that diversity allows them to create better decisions that lead to a better future for shareholders.
The TJX Companies, Inc. does acknowledge the need for checks and balances for the Board of Directors. If the current chair is not an independent director, which is currently the case, the independent directors will elect a Lead Director of the Board. The Lead Director meets with the Board as necessary, but at least quarterly throughout the year.
Additional regulations used to ensure the dedication of board members is to restrict the amount of boards their directors can be on. For example, a CEO of a publicly traded company should not be on more than three boards. Also, any member should not be a member of more than four boards. However, there is not any limitation on number of terms on the Board.
Compensation for the 2016 Fiscal Year
Salary.com, S. B. (n.d.). TJX COMPANIES INC Executive Salaries & Other Compensation | Salary.com. Retrieved December 17, 2016, from http://www1.salary.com/TJX-COMPANIES-INC-Executive-Salaries.html
Largest Instiutional Stock Owners
Nasdaq Site Maintenance. (n.d.). Retrieved December 17, 2016, from http://www.nasdaq.com/symbol/tjx/ownership-summary