Target Corp.'s (TGT) board approved changes to reduce director's
terms to one year, while it proposed moving its annual meetings to
June.
The changes still need to be approved by shareholders
representing 75% of shares at the 2010 annual meeting.
Earlier this year, Target won a high-profile proxy battle as
shareholders widely rejected a slate of board candidates proposed
by activist William Ackman, who has complained of Target's decision
to control its credit-card business.
By declassifying the board, nominees running for board seats
whose current terms expire next year would run for one-year terms.
The remaining seats that expire in 2011 would start doing the same
then. More companies have been taking such a step amid some clamor
for increased say by shareholders.
Target last month posted its eighth consecutive quarterly profit
decline, although the results were above expectations as it cut
costs and inventory. The credit-card segment's profits slid 15% on
the company's reduced investment in the segment and lower interest
rates.
Its stock is up 38% this year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com