Target Proxy Battle Heats Up

William Ackman, leader of the investment firm Pershing Square Capital Management, introduced yesterday four executives he would like to see on Target’s board of directors. One of them is Jim Donald, a former Starbucks CEO who has also worked with grocer Pathmark and Wal-Mart.”We think we can make this a better company if we improve the board,” Ackman said at a meeting in Manhattan, according to this article. Ackman, who owns 7.8% of the retailer, voiced last year two major changes he would like to see take place at the discounter, the creation of a REIT for the land under its stores and the sale of its credit card business. After Target’s rejection of those proposals, he started his proxy battle.Target has surely felt the recession and seen its market share go more toward Wal-Mart, which consumers perceive as having better deals in this tight economy. But is revamping the board and some of the ways Target does business the answer?