Target President And CEO Resigns In Wake Of Data Breach

Troubles continue for nation's third-largest retailer

Target President and CEO Gregg Steinhafel resigned Monday in the wake of the retailer's massive data breach, which damaged the company's business and tarnished its image.

"Today we are announcing that, after extensive discussions, the board and Gregg Steinhafel have decided that now is the right time for new leadership at Target," a company statement read.

Steinhafel, a 35-year veteran of the company and CEO since 2008, also resigned from the board of directors, but will remain in advisory capacity as the company seeks a permanent replacement. For now, Chief Financial Officer John Mulligan has been appointed interim president and CEO.

Steinhafel's resignation suggests that the company, the nation's third-largest retailer, is attempting to start fresh as it copes with the fallout of the data breach that found hackers stealing credit and debit card information from 40 million customers. They've since announced a plan to switch to more secure chip-based cards by 2015.

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Even beyond the breach, it's been a tough year for Target, which has made headlines recently with a discrimination charge and embarrassing website glitch, as well as a broadly criticized anti-union video.

"The last several months have tested Target in unprecedented ways," he wrote in a letter to the board of directors, posted on Target's website Monday. "From the beginning, I have been committed to ensuring Target emerges from the data breach a better company, more focused on delivering for our guests."

The company also announced the appointment of Bob DeRodes as their new chief information officer, after Beth Jacob resigned from the role in March.

Target shares have dropped 2.5 percent since the breach was disclosed. In premarket trading, shares fell $1.06 to $60.95.

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Auntie's Mail

Well, who ever is going to be Gregg Steinhafel's successor he or she better be perfect or it's out the door to them as well. Yes, Gregg Steinhafel's reputation with Target is damaged as well as their reputation. But how about the person who is responsible for their data files? Did they get fired? Or how about the Chief Financial Officer did they get fired? They put erasers on pencils because we all make mistakes. I guess Gregg Steinhafel being a 35 year veteran at Target doesn't mean anything. Very sad indeed. Here's to perfect people where ever U are!

May 06 2014 at 3:42 PM Report abuse rate up rate down Reply
CherMoeLin

Their anti-union efforts would be enough to make me stop shopping there. The data breach ABSOLUTELY is a deterrent. I stopped shopping there years ago due to their political statements, etc.

May 06 2014 at 10:58 AM Report abuse rate up rate down Reply
ghelm92160

I wouldn't feel to sorry for this guy. Sure would like to see his mustering out package!

May 06 2014 at 9:54 AM Report abuse rate up rate down Reply
Eric

This can happen to any company, but the CEO was an idiot.

May 06 2014 at 3:04 AM Report abuse rate up rate down Reply
danny

Target has not been the only company to be hacked in recent months. I do not have a problem with the way the situation was handled and have nothing but good to say about Target. The prices are fair, the stores are clean and organized, the staff has always been friendly, I usually find what I want and I have never had a problem returning anything. I would much rather shop Target than any other Department store for these reasons. Walmart,Kmart and Sears may as well be the same company as far as I am concerned because they are all badly operated. I won't stop frequenting Target based on one man's mistake or whether or not they allow irritating "bell ringers" stand at the entrance during the Holidays. I actually applauded that decision.

May 06 2014 at 2:58 AM Report abuse rate up rate down Reply
wbearl

After reading several posts here it is easy to see how Obama hood winked so many people. There is obviously a very big shortage of people with business savvy. There are many more companies out there than proven CEOs, so the better the CEO's record, the better the contract they can demand, because if you don't want to pay it, someone else will. The better CEOs have a proven talent to market. It's called supply and demand. The only mistake the Target CEO made was in his selection of VPs. Now he becomes an expensive fall guy, because it is cheaper to pay him off, than the lost business from bad press.

May 05 2014 at 10:26 PM Report abuse +1 rate up rate down Reply
mm8x6mm

Can someone say "FALL GUY " ???

May 05 2014 at 10:05 PM Report abuse rate up rate down Reply
djscherrer

Just walk out leave very one hi and dry!

May 05 2014 at 10:02 PM Report abuse rate up rate down Reply
i12cae

I stopped shopping at Target when I heard how badly they treat their black employees, forget Sterling! it is the corporations that are quietly racist and you shop there and don't even know!

May 05 2014 at 9:41 PM Report abuse rate up rate down Reply
1 reply to i12cae's comment
sscott5145

At the Target near me, I don't like seeing the cashiers with piercings all over their faces and big gauges in their ears. It makes me feel uncomfortable. I will skip Target just because of that.

May 12 2014 at 3:33 PM Report abuse rate up rate down Reply
tc

It seems unfair.

May 05 2014 at 9:24 PM Report abuse rate up rate down Reply

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