Updated
Updated · CNBC · Jun 22
Target Re-elects Brian Cornell With 87.2% Support as Board Backing Hits Decade Low
Updated
Updated · CNBC · Jun 22

Target Re-elects Brian Cornell With 87.2% Support as Board Backing Hits Decade Low

1 articles · Updated · CNBC · Jun 22

Summary

  • 87.2% of Target shareholders backed Brian Cornell for board re-election at this month's annual meeting, his lowest support since joining in 2014 and down 4 points from a year earlier.
  • The weak vote followed Cornell's February shift from CEO to executive chair after three years of annual sales declines, shrinking profits and a share price still about 50% below its 2021 peak.
  • Large public pension managers in Florida and New York voted against Cornell, citing poor long-term performance, while activists also targeted lead independent director Christine Leahy, whose support fell to 88.5%.
  • Target argues separating the chair and CEO roles lets new CEO Michael Fiddelke focus on the turnaround; he won 99% support as first-quarter comparable sales rose 5.6%, though the company says some spending was tax-refund driven.
  • Governance experts said support below 90% is rare and signals unusual shareholder dissatisfaction, increasing pressure on Target's board to show clearer change before next year's meeting.

Insights

Can Target’s new CEO succeed with his unpopular predecessor still chairing the board?
As Target boosts sales, can it also repair its brand after recent social controversies?