Activist investors target Cornell's Target board seat after CEO transition

Activist investors target Cornell’s Target board seat after CEO transition

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5.16.2026

Quick Facts

Activist group The Accountability Board wants Target shareholders to reject Brian Cornell’s board reelection after four straight quarters of traffic declines
Target’s net sales fell 1.5% to $30.5 billion in the latest quarter, with shares dropping 35% over the past five years
Cornell transitioned from CEO to Executive Chair in February 2026, earning $21.8 million in his final year as chief executive

The Accountability Board is urging Target shareholders to vote against former CEO Brian Cornell’s reelection to the company’s board of directors. The activist group argues Cornell’s continued presence as Executive Chair could hinder the retailer’s turnaround efforts under new CEO Michael Fiddelke.

Cornell stepped down as CEO in February 2026 after nearly 12 years leading the Minneapolis-based retailer. He now serves as Executive Chair while Fiddelke, a longtime Target executive, runs day-to-day operations.

The campaign comes as Target struggles with persistent performance issues. Net sales fell 1.5% to $30.5 billion in the latest quarter, marking the fourth consecutive quarter of declining customer traffic across stores and digital platforms. Full-year revenue dropped 1.7% to $104.8 billion.

Target’s stock has fallen 35% over the past five years, significantly underperforming competitors like Walmart and Costco. Shares dropped more than 6% when Cornell’s transition was announced, then slid an additional 31% over the following month.

The Accountability Board, founded by former Humane Society employees, holds $25,000 worth of Target stock. The group previously submitted a similar proposal in 2024 calling for an independent board chair, which failed with only 29% shareholder support.

“Given the persistent performance weaknesses at Target, we were surprised at the Board’s decision to promote former COO Fiddelke, rather than hire an outsider,” the activists wrote in their letter. They called Cornell’s board position a “reward for failure.”

Target confirmed receiving the proposal and said it will consider it for the 2026 annual shareholders meeting. “We always welcome shareholder input and feedback,” the company stated.

Cornell earned $21.8 million in total compensation during his final year as CEO, including $18.6 million in stock awards. The company expects 2026 adjusted earnings between $7.50 and $8.50 per share, compared to $8.13 in 2025.

Fiddelke has outlined plans to invest $1 billion in 2026 for store updates, staff training, and technology improvements. The company will also increase capital investment by more than $1 billion to $5 billion total for store remodels and supply chain enhancements.