Target shareholders on Wednesday rejected an investor proposal to separate the roles of board chair and executive leadership, according to two sources with direct knowledge of the vote. The result allows former CEO Brian Cornell to remain as executive chair despite mounting pressure from investors for a more independent voice.

Struggles with Sales and Margins

Target has struggled to keep pace with rivals such as Walmart and Costco as inflation-weary consumers gravitate toward lower prices, weighing on the company’s sales and margins. The retailer has lost roughly half of its market value since 2021, raising concerns about strategy and execution.

Recent results showed signs of recovery, but Target has cautioned that a tough macroeconomic environment could continue to pressure demand. Concerns over governance intensified after Target transitioned long-time CEO Brian Cornell to executive chairman, a position that has operational oversight over his successor Michael Fiddelke.

Fiddelke, who took over in February, is investing $2 billion this year to ensure well-stocked merchandise and sharpening prices to better compete with aggressive discounting by Walmart, Amazon and off-price chains.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.