Why Target Changed Its Retirement Rules For CEO Brian Cornell – Footwear News
Target said on Wednesday that Brian Cornell has pledged to remain CEO and lead the company for “about three more years.”
With Cornell’s pledge, the Minneapolis-based big-box retailer said its board of directors had eliminated its retirement policy, which was intended to “initiate a discussion regarding the possible retirement” of Cornell at age 65. year. (The leader is 64 years old.)
In a statement Wednesday, Monica Lozano, senior independent director of Target’s board of directors, said it was “important” for the board to assure stakeholders of Cornell’s intention to remain in office, noting the accomplishments he has made since taking the helm. in 2014.
“We enthusiastically support his commitment and continued leadership, especially given his track record and the company’s strong financial performance during his tenure,” Lozano added. “The Board is delighted that Brian is committed to continuing to lead Target’s strategy and drive its long-term, multi-year plan alongside his talented management team.”
Cornell added in a statement that being a member of the Target team has been the “highlight” of his career and that he is “energized” to lead the company in the years to come.
“By caring for our customers, our team, our communities and our shareholders, Target has added nearly $40 billion in annual revenue since I joined the company, and in many ways, we don’t. let’s just get started,” Cornell said. “Our success is fueled by the best team in retail, and I’m confident our culture will continue to propel our business forward.”
Target also announced Wednesday that Arthur Valdez, executive vice president and chief supply chain and logistics officer, will retire from the company. Gretchen McCarthy, senior vice president of global inventory management, will succeed Valdez and join Target’s leadership team.
McCarthy will report to John Mulligan, executive vice president and chief operating officer of Target, effective immediately. Valdez and McCarthy have worked closely together to ensure a smooth transition, and Valdez will continue to work with the Target team in an advisory role through April 2023, the company added.
The announcements come just weeks after Target said it reduced its “inventory exposure in discretionary categories” throughout the second quarter by canceling more than $1.5 billion in orders in those categories and cutting revenue.
In June, Target outlined a plan to “readjust” inventory for the rest of the year by offloading excess inventory into the supply chain. Target said it saw an unexpected slowdown in sales in categories including home, electronics, sporting goods and apparel, with consumers spending most actively in essential categories such as food and beverages.
In the second quarter of 2022, Target reported adjusted earnings per share of 39 cents versus 72 cents expected by analysts. This is a decrease of 89.2% compared to the same quarter last year. The company reported revenue of $26 billion, up 3.5% from the same quarter last year.