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Target’s final tally shows dissent against board

By WTOP Staff

ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Target Corp.’s final shareholder vote tally showed a rise in dissent against key board members, highlighting how a massive data breach is eroding faith among its investors.

All 10 nominees were elected to the board Wednesday at the discounter’s annual shareholders’ meeting. But the rise in votes against several key directors shows that Target, based in Minneapolis, has a lot of work to do to shore up confidence among the investor community.

The investor dissatisfaction comes at one of the most tumultuous times in Target’s history as the discounter faces challenges on all fronts ranging from the data breach to a botched-up expansion in Canada. The company fired its CEO Gregg Steinhafel in early May and is looking for a new leader.

The shareholder dissent follows a recommendation by Institutional Shareholder Services last month to shareholders to get rid of seven out of 10 directors who serve on the company’s audit or corporate committees because they failed to spot the pre-Christmas security threat. The breach compromised credit card and personal information of millions of customers and exposed big security flaw. That move seemed to influence the shareholders’ votes.

All seven members who were targeted by ISS saw at least 19 percent of the shares cast were against each of them, according to the results released by Target.

Among the hardest hit were James A. Johnson, who was once the CEO at Fannie Mae, and Anne Mulcahy, former chair and CEO at Xerox. Of the 557 million shares voted — representing 88 percent of shares outstanding on the record — Target says that 37.1 percent of the votes cast were against Johnson, while 36.4 percent were against Mulcahy. Twenty-two percent of the votes were cast against board member Roxanne S. Austin, who is serving as interim nonexecutive chair of the board.

One shareholder proposal that called for creating an independent chairman was backed by a strong 45.8 percent of the votes, while nearly 54 percent were against the proposal. The company’s Chief Financial Officer John Mulligan is serving as interim CEO.

The other two shareholder proposals — one that was against Target’s discrimination policy and the other that was against executive perks — both received the support of less than 4 percent of the votes.

As for the management’s proposal to approve the company’s executive compensation plan, 77.9 percent of the votes supported it, while 22.1 percent were against it.

“During this proxy season, we have had a productive dialogue with many of our investors, and we look forward to continued engagement in the weeks and months to come,” said Austin in a statement.

In an address to shareholders Wednesday, Mulligan reiterated to investors three priorities: revitalizing Target’s U.S. business by constantly testing new products; becoming a digital leader and catering to shoppers jumping back and forth between online and physical stores; and improving operations in Canada.

Last month, Target cut its annual profit outlook and said its first-quarter earnings fell 16 percent. Target is overhauling its security and technology departments and its systems.

Target’s shares slipped 1 cent to close at $57.23 Friday.

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Follow Anne D’Innocenzio at http://www.Twitter.com/adinnocenzio

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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