Activist Investor Wants Target’s Brian Cornell Completely Out

Core Insights - An activist investor, the Accountability Board, is attempting to block Brian Cornell's transition to executive chairman at Target, following a series of poor business results and a declining stock price [1][2] - Target's stock has lost over 20% of its value in the past two years, contrasting with Walmart's stock, which has nearly doubled in price [3] - Target's second quarter results showed a net income of $935 million, down 21.5% year-over-year, with net sales of $25.2 billion, a decrease of 0.9% from the previous year [6] Company Performance - Target has faced sustained challenges in performance, with inconsistent sales growth and declining foot traffic [3] - The company experienced sales and profit declines in the second quarter, continuing a trend of faltering business under Cornell's leadership [5] Leadership Changes - Michael Fiddelke, currently the COO, is set to succeed Cornell as CEO, a decision met with mixed reactions from investors [1][3] - Fiddelke has a long history with Target, having worked there for 20 years in various roles, which retail analysts believe provides him with a deep understanding of the company [3] Controversies and Challenges - Target has faced criticism for scaling back on diversity, equity, and inclusion initiatives, as well as controversies surrounding the removal of LGBTQ+ merchandise due to protests [4] - The Accountability Board's proposal for an independent board chair policy reflects broader concerns about Target's governance and performance [2][3]