Target CEO Exempt From Retirement Rules, Will Stay on 3 More Years
Target CEO Brian Cornell will stay on to lead the retailer for three more years, bypassing the company's policy of retiring at 65, Target announced Wednesday. Cornell, 63, has led the company since 2014. Target said in a press release Wednesday that in allowing Cornell to stay on for three additional years, the company had eliminated its retirement policy, which was "designed to initiate a discussion regarding the possible retirement of its CEO at the age of 65."
Monica Lozano, Target's lead board director, said the board was pleased Cornell decided to stay on.
"We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company's strong financial performance during his tenure," Lozano said. "Since joining Target in 2014, [Cornell] has worked to transform Target into an omnichannel leader by driving a guest-centric, purpose-driven strategy."
Target also announced that Arthur Valdez, executive vice president and chief supply chain and logistics officer, is retiring. Gretchen McCarthy, currently the senior vice president of global inventory management, will succeed him.
Total Retail's Take: Under Cornell's leadership, Target has added nearly $40 billion in annual revenue, as well as expanded its customer base and built on its reputation as a discounter with unique and fashion-forward merchandise, CNBC reports. However, the company — like many retailers — has grappled with the shifts in shopping habits and growing inflation, resulting in stockpiled inventory and slowed sales. Target announced last month that its quarterly profit fell nearly 90 percent from a year ago, and said in June that it would slash prices on some items to get rid of excess inventory. Yet the board believes, and with a track record to back it up, that Cornell is the right person to lead the organization through this transitionary period and back to profitable growth.