NEW YORK - Target Corp said on Thursday that its board of directors agreed to declassify its structure, in a move that would make directors stand for reelection each year.
The amendment, which will be voted on by shareholders at the retailer's 2010 annual meeting, would require support from the holders of 75 percent of outstanding shares.
If the amendment were approved, board nominees whose terms expire at the 2010 meeting would be elected for one-year terms, and starting with the 2011 meeting, all nominees would be elected for one-year terms, Target said.
Earlier this year, Target won a proxy battle against Pershing Square Capital Management, whose manager William Ackman tried to replace four of Target's directors with his independent slate.
Experts have said it is not out of the question for Ackman to mount another proxy battle in 2010.
The company also said the board approved changes to company bylaws that would permit the annual meeting to be held in June, which it said would accommodate board member attendance.
Target shares were up 29 cents at $47.94 in morning trade on the New York Stock Exchange. (Reporting by Martinne Geller, editing by Gerald E. McCormick)