New Target CEO, a former CFO, ‘must prove he’s not just another insider,’ executive recruiter says

s·CFO DailyNew Target CEO, a former CFO, ‘must ve he’s not just another insider,’ executive recruiter saysBy Sheryl EstradaBy Sheryl EstradaSenior Writer and author of CFO DailySheryl EstradaSenior Writer and author of CFO DailySheryl Estrada is a senior writer at Fortune, where she covers the corporate finance industry, Wall Street, and corporate leadership

She also CFO Daily.SEE FULL BIO Getty ImagesGood morning

Cornell has led Target for 11 years

Fiddelke’s rise to the top comes as Target faces financial challenges and declining customer trust after backlash and boycotts related to its reversal on DEI efforts earlier this year

Foot traffic and revenue remain down

Target reported another weak quarter on Wednesday with comparable sales down 1.9%, and reaffirmed its expectation of a low, single-digit sales decline for the year—jecting a third consecutive annual drop

Citi analyst Paul Lejuez said investors were ‘hoping for an external CEO’ with fresh eyes

Target’s stock is down 64% since its all-time high four years ago.” During the earnings call on Wednesday, Cornell said the board chose Fiddelke through a “deliberate and thoughtful” succession planning cess over several years

The board evaluated his qualifications alongside a “strong list” of both external and internal candidates, he said

Fiddelke said on the call that he’s eager to step into a role at a company he loves, but admitted, “I know we’re not realizing our full potential right now.” He called for a “ and urgent commitment” to build new momentum and return to fitable growth

I asked Shawn Cole, president and founding partner of executive and consulting firm Cowen Partners, for his assessment of the internal hire

After 20 years at Target, Cole said Fiddelke was the safe and easy choice. “Executive es take time, and Target ly wanted continuity over disruption,” he said. “When a brand is already struggling, boards often look inward for someone who knows the playbook, culture, and

The downside is exactly what we saw in the market reaction: investors were hoping for fresh eyes.” From CFO to CEO Fiddelke’s ascent at Target highlights a growing trend—moving from CFO to CEO, sometimes with a COO role in between

The rise, fueled by more retirements and record CEO turnover in 2024, was especially minent in the S&P 500 and ASX 200 indexes, according to the report. “In this environment, with economic headwinds, tariffs, and margin pressure, the CFO seat has become a real launchpad,” Cole said

CFOs today are strategic operators with boardroom presence, and Fiddelke’s time as COO is significant, a traditionally strong source for CEOs

What does Cole think Fiddelke must do to earn stakeholders’ trust? “He’s got to ve he’s not just another insider keeping the quo a,” he said. “Employees need to see culture and innovation tackled, investors want a turnaround story, and customers want excitement shopping at Target again

Until Lau’s appointment, CEO Todd Vasos will act as principal financial officer

Lau returns to Dollar General with over six years of previous experience at the company

Earlier in his career, he held gressively senior roles in financial planning, investor relations, and corporate strategy at Yum! Brands, Inc

Big Deal“The Future of Legal Operations” is a new report from KPMG Law US that gauges sentiment on legal managed services

In addition, just 22% of U.S. organizations have a single source of truth with governance in place to manage contract inventory, and data inconsistency may be a roadblock, according to the report

Going deeper"Starbucks’ CEO is ditching a merit system and giving all salaried staff a flat 2% pay raise instead" is a Fortune report by Nino Paoli

From the report: "Starbucks CEO Brian Niccol is ditching a merit system in favor of a uniform 2% pay raise for all salaried employees in North America this year

The move comes as the coffee chain looks to limit costs while investments are funneled into turnaround efforts

Compensation experts tell Fortune that salary slowdowns are common amid economic uncertainty, but the 2% rate lags behind the national average." Read more here.Overheard"Artificial intelligence may end up being more impactful than the Industrial Revolution."—John Nay, founder and CEO of Norm Ai, a regulatory compliance AI company, and Troy A

Paredes, a former commissioner of the U.S

Securities and Exchange Commission, write in a new Fortune opinion piece

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