Discount retailer Target Corp (TGT  ) tapped PepsiCo, Inc's (PEP  ) Jim Lee as its CFO and a member of its leadership team, effective September 22.

Lee brings over 25 years of experience in finance, strategy and more at PepsiCo. Lee will take over from COO Michael Fiddelke. Lee has served on multiple boards during his PepsiCo career, including Tropicana Brands Group and Celsius Holdings.

In connection with his appointment, Lee will receive an annual base salary of $850,000, will be eligible for a pro-rated annual cash incentive under Target's Short-Term Incentive Plan.

Specifically, Lee will receive a cash sign-on bonus of $2.2 million, which is subject to repayment in the event of voluntary termination or termination for cause within the first 36 months of employment, and will be granted a sign-on award of restricted stock units under 2020 Long-Term Incentive Plan with a target payout value of $6.95 million.

Target Chair and CEO Brian Cornell: "From his consumer centric leadership, to his strategy, business development and corporate governance experience, Jim will be a great addition to our leadership team as we focus on driving Target's roadmap for growth."

The CFO transition coincides with the upcoming holiday season. The Walmart Inc (WMT  ) rival wants to hire 100,000 seasonal workers despite a slower holiday season expectation as the inflation bites. However, the recent upward revision of the 2024 adjusted EPS outlook to $9.00-$9.70, up from $8.60-$9.60 following an upbeat second-quarter print, backs the hiring decision.

Amazon.Com Inc (AMZN  ) boosted the fulfillment and transportation employee and delivery driver pay for uninterrupted service ahead of the busy season. Walmart also raised compensation for 100,000 frontline associates.

The U.S. Federal Reserve's plans to reduce the benchmark interest rate by 50 bps will likely pose a tailwind for the retailers.

Price Action: TGT stock is up 1.50% to $155.90 premarket at last check Thursday.