Target CEO resigns as fallout from data breach continues


Target’s massive data breach claimed its highest-profile victim yet — Chief Executive Gregg Steinhafel — as the retailer struggles to recover the trust of shoppers and investors.

After 35 years with the brand, Steinhafel stepped down Monday as Target Corp.’s CEO, president and chairman following “extensive discussions” with the Minneapolis company’s directors, the company’s board said in a statement.
“We are grateful to him for his tireless leadership,” the statement said.

Steinhafel, 59, resigned less than five months after the retailer disclosed a data breach that has jeopardized as many as 40 million payment card accounts since the Black Friday shopping bonanza over the Thanksgiving weekend.
The company later said that hackers had illegally accessed personal information such as phone numbers and email addresses from as many as 70 million customers.

Even after Target threw assurances and discounts at customers, the retailer’s revenue slid 5% during the Christmas quarter. The company has spent at least $61 million dealing with the hack, though $17 million of that was expected to be covered by insurance.

Target’s shares fell $2.14, or 3.5%, to $59.87 on Monday. Since Target first acknowledged the problem in mid-December, when the stock was selling for nearly $64 a share, the price has fallen as low as $55.07. The stock is down nearly 19% from its 52-week high.

Target’s board said Steinhafel “held himself personally accountable” for the breach, one of the largest on record at a retailer.

He probably decided to depart on his own once the scope of the breach became clear, said Jason Hanold, managing partner of executive search firm Hanold Associates.

“It was a matter of when he was going to leave, given the magnitude of the failure,” said Hanold, whose firm has placed senior leaders at Inc., Nike Inc. and Google Inc. “But I admire the timing — some boards could have had a knee-jerk reaction immediately after the fact that wouldn’t have given them the time to responsibly react and fix the problems.”

Steinhafel will serve as an advisor to Target, which has 1,789 U.S. stores and 127 Canadian locations. He became chief executive in 2008 and introduced fresh groceries and smaller-scale City Target store models.


its actually refreshing to see a CEO take some blame and do the right thing..bankers and politicians could learn something from it..he wasnt responsible for the hack but he was steering the boat at the time so he wears the blame..sounds fair to me..


~ by seeker401 on May 8, 2014.

2 Responses to “Target CEO resigns as fallout from data breach continues”

  1. When it comes to “hacking” I’m leery of these stories. Most of the time it’s just script kiddies that are able to use exploits within software or O/S’s etc. You’d think companies like target would be kept up to date with all of that. What about corporate espionage? If a company can be targeted (no pun intended) and “hacked” then a CEO falls on their sword after said company loses sales because of that then why aren’t more companies being hit? If anonymous was truly so hell bent on taking down the infrastructure of the 1% it would be done already. Anonymous is a plant just like Wikileaks and any other disinformation network out there meant to bring you “truth”. Check out this link to another friends website. If the “hacking” continues then the kill switch in the U.S. will be used.. hell I’m sure once WWIII begins then FB and Twitter and other social networking, along with independent blogs like mine or this one will go down. Blacklists have been being made and if you uploaded more than 3 pictures of yourself at diff angles then you’re in the facial recognition database (not to mention if you were captured on video or CCTV etc). If you think I’m wearing a “tin foil” hat know that the whole concept of that is to block the ELF (extreme low frequency) waves that will invade your mind when the great deception hits. Remember the movie signs? They were giving you clues much like how Hollywood does anyhow speaking secretly to the initiated and then blatantly putting in things so “truthers” can tell you to wake up. It will take a lot more than waking up from a lie to begin with to awaken people from their spiritual slumber. It’s called strong delusion in the bible (2Th 2:11) and God sends it for people to believe the lie. He doesn’t make it look easy but once you figure truth out it’s pretty simplistic in nature and you’ll never think the same way again.

    • “If anonymous was truly so hell bent on taking down the infrastructure of the 1% it would be done already. Anonymous is a plant just like Wikileaks and any other disinformation network out there meant to bring you “truth”.

      now that IS truth..

      and i am extremely worried about the power the ELF can bring if used against us..


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