More financial advisory firms are sounding off on
The argument over whether to elect hedge fund manager William Ackman and his nominees to Target's board is heating up as to the company's annual meeting on May 28 nears.
On Tuesday, RiskMetrics Group recommended shareholders elect Ackman and former
CEO Jim Donald, and to shrink the board size. "In our opinion, given the atypical strategies of the company with respect to credit cards and real estate, the board would benefit from new blood with the specific skill sets and incentives to ensure that the company is able to quickly capitalize on future opportunities," RiskMetrics wrote in its report.
Ackman holds a 7.8% stake in the retailer through his Pershing Square Capital Management hedge fund.
Glass Lewis & Co., on the other hand, said shareholders should approve the four nominees suggested by Target, which wants to keep the number of board seats at 12.
"We believe that the current board and management are working diligently to guide the company through this tough period. In our opinion, the current management remains the best team to lead the company's stabilization and future growth," Glass Lewis said in a report. "Pershing Square has presented no operating strategy for the board or shareholders to consider."
Last week, Proxy Governance advised shareholders to elect two of the five dissident board nominees supported by Ackman -- Donald, and Michael Ashner, a real estate executive.
Egan-Jones Proxy Services is supporting all but two of Target's nominees. It recommended withholding votes for
Chairman Richard Kovacevich and private-equity executive George Tamke, saying they are not independent.
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