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Describe Target Corporation’s succession plan and whether or not it aligns with your company’s vision.

Answer 1

Describe Target Corporation’s succession plan and whether or not it aligns with your company’s vision.

The Target Corporation's management has a very clear and efficient succession plan as per their SEC filings. I have selected Dollar General Corporation as my company to compare with Target Corporation's succession plan. Dollar General Corporation is also in retail business and one of the big competitors of The Target Corporation.

SEC filings of Target corporation clearly explain their succession planning as "Board of directors of Target Corporation has a primary responsibility to ensure that Target Corporation has a high-performing management team in place. The Board conducts a detailed review of management development and succession planning activities to maximize the pool of internal candidates who can assume top management positions without undue interruption every year. The independent directors, led by the Lead Independent Director, review CEO succession planning, and ensure that management is evaluated regularly and that senior management succession planning reviews are conducted at least annually, either by the Nominating & Governance Committee or the independent directors as a group. During the last year, the Board of directors conducted a comprehensive search with the assistance of a third-party executive leadership consultant that resulted in appointing Target Corporation's new Chairman and CEO. Prior to hiring new CEO, the Board appointed an experienced executive from their pool of internal candidates, their Chief Financial Officer, to serve in the additional capacities of Interim President & CEO. The quality leadership provided by the CFO during that interim period allowed the Board of directors sufficient time to ensure that its comprehensive search resulted in hiring the right candidate to lead Target."

Dollar General Corporation's succession planning is more or less similar to Target corporation succession planning according to their SEC filings. "Dollar General Corporation's corporate governance guidelines require their Board of Directors to coordinate with their CEO to ensure that a formalized process governs long-term management development and succession. Dollar General Corporation Board of directors formally reviews their management succession plan at least annually. Their comprehensive program encompasses not only their CEO and other executive officers but all employees through the front-line supervisory level. The program focuses on key succession elements, including identification of potential successors for positions where it has been determined that internal succession is appropriate, assessment of each potential successor's level of readiness, and preparation of individual growth and development plans. With respect to CEO succession planning, our long-term business strategy is also considered. In addition, they maintain at all times, and review with the Board periodically, a confidential procedure for the timely and efficient transfer of the CEO's responsibilities in the event of an emergency or his sudden incapacitation or departure."

Most of the succession plans of Target Corporation aligns with Dollar General Corporation except in one very important point which is that Target Corporation considers for assuming top management positions are limited to certain employees in the management position but Dollar General Corporation considers not only their CEO and other executive officers but all employees through the front-line supervisory level.