Target Shareholders Say ‘No’ to Activist Investor
head of Pershing Square Capital Management and activist investor, has wanted
to shake things up at Target. In the past year, he has pushed for the company
to sell its credit card operations, spin off its real estate assets and
forced a shareholder vote to expand Target’s board and elect directors
who shared his vision for the retailer’s future.
Unfortunately for Mr. Ackman,
he has not made the case for change with the majority of Target’s shareholders.
At the company’s annual meeting yesterday, shareholders voted to maintain
the board size at 12 instead of the 13 he sought. It also reelected four
incumbent board directors rather than those backed by Mr. Ackman.
outcome demonstrates the confidence Target shareholders have in our Board’s
qualifications, diversity and experience to provide effective and independent
oversight and direction to the company, contributing to the creation of
one of the most recognized brands in the United States,” said Gregg Steinhafel,
Target’s chairman, president and chief executive officer, in a press release.
“We remain dedicated to serving the interests of all shareholders by
sustaining Target’s competitive advantage, driving continued profitable growth
and generating substantial shareholder value over time.”
believe that Target’s board has shown a strong purpose and direction, and
I think it would have been disruptive if Ackman would
have had these people,” Walter Loeb, a retail consultant, told The
What do you think of the vote by Target shareholders to side with the
company’s board over William Ackman? In general,
are activist investors such as Mr. Ackman a
positive or negative force when it comes to the long-term health of the
companies they invest in?
Corporation Shareholders Elect Company’s Director Nominees and Establish
Board Size of Twelve at Annual Meeting – Target Corporation
shareholders side with company, reject Ackman slate
in battle over board’s size, makeup – The Associated Press/Minneapolis