Kokomo Tribune; Kokomo, Indiana

Business

May 5, 2014

Target's Chairman and CEO out in wake of breach

NEW YORK (AP) — Target's massive data breach has now cost the company's CEO his job.

Target announced Monday that Chairman, President and CEO Gregg Steinhafel is out nearly five months after the retailer disclosed the breach, which has hurt its reputation among customers and hammered its business.

Experts say his departure marks the first CEO of a major corporation to resign in the wake of a data breach and underscores how CEOS are now becoming more at risk in an era when such breaches have become common.

The nation's third-largest retailer said Steinhafel, a 35-year veteran of the company and CEO since 2008, has agreed to step down, effective immediately. He also resigned from the board of directors.

The departure suggests the company is trying to start with a clean slate as it wrestles with the fallout from hackers' theft of credit and debit card information on tens of millions of customers. The company's sales, profit and stock price have all suffered since the breach was disclosed.

A company spokeswoman declined to give specifics on when the decision was reached. But in a statement issued Monday, the board said that that after extensive discussions with Steinhafel, they both "have decided it is the right time for new leadership at Target."

The company's stock fell more than 3 percent Monday morning.

Target, based in Minneapolis, said Chief Financial Officer John Mulligan has been appointed interim president and CEO. Roxanne S. Austin, a member of Target's board, has been named as interim nonexecutive chair of the board. Both will serve in those roles until permanent replacements are named.

Steinhafel will serve in an advisory capacity during the transition. Jim Johnson remains lead independent director on the board.

"He was the face of the public breach. The company struggled to recover from it," said Cynthia Larose, chair of the privacy and security practice at the law firm Mintz Levin. "It's a new era for boards to take a proactive role in understanding what the risks are."

Text Only | Photo Reprints
Business
  • Honda Tougher Compact Car [Duplicate] Honda bolsters Fit to boost crash resistance DETROIT (AP) — When the subcompact Fit failed a crash test, Honda went back to the drawing board. The tiny Fit, redesigned for the 2015 model year, initially flunked the Insurance Institute for Highway Safety's small overlap test, earning just a "Mar

    August 22, 2014 1 Photo

  • Financial Markets Wall Street-6 [Duplicate] Asian stocks higher after S&P 500 record close HONG KONG (AP) — Asian stocks inched higher on Friday after a record day on Wall Street powered by upbeat data that adds to evidence the world's biggest economy is gaining strength. Gains were tempered as investors awaited a key meeting of U.S. centr

    August 22, 2014 1 Photo

  • At Jackson Hole, central bankers eye varying goals WASHINGTON (AP) — The central bankers meeting this week at their annual conference in Jackson Hole, Wyoming, aren't exactly in sync. Many are taking steps that clash with the policies of others. The Federal Reserve is preparing to reduce its economic

    August 22, 2014

  • Apple Stock [Duplicate] Apple's stock bounces back to hit a new high SAN FRANCISCO (AP) — Apple's stock touched a new high Wednesday, reflecting investors' renewed faith in CEO Tim Cook's ability to outwit the competition and expand the technological hit factory built by the late Steve Jobs. The milestone represents

    August 20, 2014 1 Photo

  • Eriks MAIN Eriks Chevrolet celebrates after completing tornado recovery When Eriks Chevrolet vice presidents Karen Bellus and Tom Rethlake looked out across the property of their dealership directly after the Nov. 17 tornado, they saw a scene of absolute devastation. Over $1 million in damage was done to the facilities.

    August 13, 2014 2 Photos

  • EPA Weed Killer [Duplicate] Decision could boost use of popular weed killer WASHINGTON (AP) — Faced with tougher and more resistant weeds, corn and soybean farmers are anxiously awaiting government decisions on a new version of a popular herbicide — and on genetically modified seeds to grow crops designed to resist it. Criti

    August 13, 2014 1 Photo

  • Posh Salon earns Redken Elite status Posh Salon and Day Spa became just the fifth Indiana salon to achieve Redken Elite Salon status, it was announced this week. As part of the honor, the Posh styling team will travel in November to the Redken Exchange for a three-day, hands-on training

    August 10, 2014

  • Cures for ourills revealed Goober Goodenough is a long-time member of the Indiana General Assembly. You probably know the roadside signs he puts up before every election: “Goober is Goodenough for Indiana.”It has surprised me that Goober has not had a bigger role in the curren

    August 10, 2014

  • Cool summer sets expectations for a record harvest DES MOINES, Iowa (AP) — A mild summer across much of the nation's heartland has provided optimum growing conditions for the nation's corn and soybean crops. Pair that with high-yield seeds and other new farming technologies, and the U.S. is looking a

    August 8, 2014

  • Report: Indiana consumer rebounds from recession INDIANAPOLIS (AP) — A new report by the U.S. Commerce Department shows that consumer spending in Indiana has rebounded from the end of the Great Recession faster than the national average. The report released Thursday estimates state-by-state consume

    August 8, 2014

Latest news
Featured Ads
Only on our website
AP Video
Furry Roommates: Dorms Allowing Cats and Dogs Chase Rice Defends Bro-Country 'Jersey Shore Massacre' Pokes Fun at MTV Series Raw: Wash. Mudslides Close Roads, Trap Motorists DC's Godfather of Go-Go Honored Ukraine Calls Russian Convoy a 'direct Invasion' Girl Meets Her 'one in the World' Match Coal Gas Boom in China Holds Climate Risks Japan Landslide Rescuers Struggle in Heavy Rain Raw: Severe Floods, Fire Wrecks Indiana Homes Endangered Red Wolves Face Uncertain Future Raw: Russian Aid Convoy Arrives in Ukraine Okla. Policeman Accused of Sex Assaults on Duty Dominican Republic Bans Miley Cyrus Concert Raw: Israeli Air Strike in Gaza Raw: Bodies of MH17 Victims Arrive in Malaysia Attorney: Utah Eatery Had Other Chemical Burn
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller