Board says “yes” to annual elections

Hedge fund manage Bill Ackman may have lost his proxy battle earlier this year, but recent action by the Target board suggests the body was paying attention to some of his suggestions. The board amended Target’s articles of incorporation so that members will be elected to one year terms. The change won’t take affect until next year though and requires the approval of 75% of shareholders at the retailer’s annual meeting in 2010. Under Target’s current structure, board members are elected to multiple year terms and those terms are staggered. The structure was a point of contention with Ackman who felt member should be elected annually.

“Target has a long history of strong corporate governance and responsiveness to shareholders,” said Jim Johnson, Target’s lead outside director. “As a result of shareholder input and the board’s ongoing review of its governance practices, the board believes that these changes are in the best interest of Target and its shareholders.”

In addition to giving shareholders the ability to elect board members annually, the company plans to move its annual meeting to June from May.