Target's former CEO and current executive chairman Brian Cornell received 87.2% shareholder support during the company's annual general meeting this month, marking his lowest approval level since joining the board over a decade ago. The 4% decline from the previous year came after Cornell transitioned from CEO to executive chairman in February amid three consecutive years of annual sales declines and a falling share price. Two major pension fund managers — the Florida State Board of Administration and New York State Common Retirement Fund — voted against Cornell, citing poor long-term company performance, while the S&P 500 director average stands at 96.6% support.
Cornell Receives 87.2% Shareholder Support at Annual Meeting
Cornell, 67, was reelected to Target's board of directors with 87.2% of shareholder votes during the company's annual general meeting this month. The result represents a 4% decline from the year-ago period and falls below his historical average of 95% support. The approval level is also below the average level of support directors have received across the S&P 500 this year, which Harvard Law puts at 96.6%.
Kevin Kaiser, an adjunct full professor of finance at The Wharton School of the University of Pennsylvania, said getting under 90% "is very poor" and "means people are going out of their way to say they don't want you there anymore." Kaiser noted that "anything below 90 is considered a very bad result" given how many investors automatically approve what major proxy firms or boards suggest.
Florida and New York Pension Funds Vote Against Cornell
The Florida State Board of Administration, which manages the Florida Retirement System Pension Plan with about $277 billion assets under management, voted against Cornell after supporting him for the past nine years. Proxy records show the fund manager voted against Cornell because of "poor long-term company performance."
New York State Comptroller Thomas DiNapoli, who manages the $295 billion New York State Common Retirement Fund, stated that "Cornell and others should not be rewarded for poor performance." DiNapoli said "investors are not supporting Target's leadership because it mismanaged the company's workforce, hurt the brand, and damaged shareholder value." State records show the fund supported Cornell from 2017 through 2024 but voted against him at the last two meetings.
Target Reports 5.6% Comparable Sales Growth in Fiscal Q1
During the company's fiscal first quarter, which ended May 2, Target saw comparable sales grow 5.6% — its first positive same-store sales number in five quarters, with strength across all six of its core merchandising categories. Target said its turnaround efforts are showing signs of early progress, though finance chief James Lee acknowledged higher tax refunds helped to fuel spending, a benefit he expects to fade over the rest of the year.
CEO Michael Fiddelke, who replaced Cornell in the top role, received 99% of the vote during the company's meeting. Since joining Target as CEO in 2014, Cornell grew sales by more than 44% and helped transform it into a $100 billion-plus company as he oversaw the expansion of its digital presence and grew stores.
Lead Director Christine Leahy Sees 8% Support Decline
Lead independent director Christine Leahy received 88.5% of the vote during the most recent meeting, an 8% decline in support from last year. A number of left-leaning activists — including SOC Investment Group, Trillium Asset Management and Mercy Investment Services — called on investors to vote against both Cornell and Leahy.
In its proxy statement, Target called Leahy a strong director "supported by a governance structure designed to further promote independence" as it recommended shareholders vote in her favor. The company's proxy statement said keeping the roles of board chair and CEO separate "is appropriate given the company's immediate strategic and operational priorities" as the positions have "distinct roles and responsibilities."
FAQ
What percentage of shareholder support did Brian Cornell receive at Target's annual meeting?
Brian Cornell received 87.2% shareholder support during Target's annual general meeting this month, representing a 4% decline from the year-ago period and his lowest approval level since joining the board over a decade ago.
Which major pension funds voted against Brian Cornell?
The Florida State Board of Administration, which manages about $277 billion in assets, and the New York State Common Retirement Fund, which manages $295 billion, both voted against Cornell. The Florida fund cited "poor long-term company performance" as its reason, while New York State Comptroller Thomas DiNapoli stated Cornell "should not be rewarded for poor performance."
How did Target perform in its fiscal first quarter ended May 2?
Target reported 5.6% comparable sales growth during its fiscal first quarter ended May 2, marking its first positive same-store sales number in five quarters with strength across all six core merchandising categories.
