Like rubbing salt into the wound, an activist investor is seeking to block outgoing Target chief executive officer Brian Cornell’s transition to executive chairman next February.
In August, Cornell, under pressure due to a string of poor quarterly business results and declining stock price, said he would step down as Target’s CEO on Feb. 1 and transition into the role of executive chairman. Michael Fiddelke, Target’s chief operating officer, will succeed Cornell as CEO.
But on Wednesday, the Accountability Board, an activist investor with an undisclosed stake in Target, filed a shareholder proposal seeking an independent board chair policy at Target. The proposal did not suggest any candidates for the role.
“With sustained challenges in both performance and reputation, it’s a tough time for Target — to put it mildly,” the proposal states. “Sales growth has been inconsistent, there have been declines in foot traffic, and controversies abound. As an August 2025 New York Times article observed, ‘Target’s stock has lost more than a fifth of its value over the past two years, while Walmart’s has nearly doubled in price.’”
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In response to the activist’s proposal, a Target spokesperson told WWD, “We have received this shareholder proposal and the board will consider it in conjunction with planning for our 2026 annual shareholders meeting. We always welcome shareholder input and feedback.”
The Accountability Board also took issue with the appointment of Fiddelke as Target’s next CEO, noting that investors reacted negatively to the news and brought the retailer’s stock price down. While not exactly applauding Target’s choice of insider Fiddelke as its next CEO, preferring to have seen some fresh blood from the outside assume the role, retail analysts believe he’s talented and has an exhaustive knowledge of Target and its complexities. Fiddelke has worked at Target for 20 years in a spectrum of roles and is currently the chief operating officer. He started as an intern in finance and grew into merchandising, finance and operations roles. Fiddelke’s appointment to succeed Brian Cornell next February was widely expected.
Target and other companies have taken heat for recently pulling back on their diversity, equity and inclusion programs and goals. Target was also embroiled in controversy in 2023 when it removed LGBTQ+ merchandise after some people protesting the merchandise were threatening Target workers, according to the company.
The Street is critical of Cornell for not initiating enough changes and corrections to improve Target’s business, which has been faltering for several seasons. In the second quarter, Target once again experienced sales and profit declines, though for most of Cornell’s 11-year tenure as CEO, Target showed great growth.
For its second quarter ended Aug. 2, Target’s net income of $935 million was down 21.5 percent from the year-ago period. Net sales reached $25.2 billion, which was 0.9 percent lower than the prior-year quarter. Comparable sales were down 1.9 percent.
