Target CEO Cornell to stay three more years in bid for stability

(Reuters) -Target Corp on Wednesday scrapped its policy of chief executives having to retire at 65, allowing Brian Cornell to lead the retailer for another three years as it battles through a period of high inflation and overstocked stores.

Cornell, 63, has served as Target (NYSE:TGT)'s CEO since 2014 helping beef up the company's online shopping and delivery operations to keep pace with larger rivals Amazon.com Inc (NASDAQ:AMZN) and Walmart (NYSE:WMT) Inc.

In 2015, he also led the company though the exit of its Canadian operations and the sale of its pharmacy business to CVS Heath Corp.

The former PepsiCo (NASDAQ:PEP) and Walmart Inc executive is now tasked with clearing Target's shelves of excess apparel, electronics and other discretionary goods as soaring inflation dampens consumer spending power.

Target reported a bigger-than-expected 90% fall in quarterly earnings last month due to steep discounts it had implemented to spur demand.

"In discussions about the company's longer term plans, it was important to us as a board to assure our stakeholders that Brian intends to stay in his role beyond the traditional retirement age of 65," said Monica Lozano, the lead independent director of Target's board.

Cornell's total 2021 compensation was $19.76 million, roughly the same as the prior year.

Boeing (NYSE:BA) Co last year extended its required retirement age to 70 from 65 to allow CEO Dave Calhoun to stay in the top job.

Target also said on Wednesday Chief Supply Chain and Logistics Officer Arthur Valdez will retire and be succeeded by Gretchen McCarthy, head of the company's global inventory management.

The big-box retailer's shares fell marginally in premarket trading. They have fallen over 29% his year.