Target’s Board of Directors recently announced the departure of the company’s Chairman, President and CEO Gregg Steinhafel in the wake of the headline making data breach that exposed account details of more than 100 million customers late last year, and now some of those Board members my be the next in line to be go.
Institutional Shareholder Services (ISS), a provider of corporate governance solutions for stakeholders, has advised that seven of the ten board of directors members at Target be ousted from their positions for failure to act sufficiently in order to prevent the massive data breach.
“It appears that failure of the committees to ensure appropriate management of these risks set the stage for the data breach, which has resulted in significant losses to the company and its shareholders,” ISS said in a statement.
The decision let Steinhafel go came just one week after the company announced the appointment of Bob DeRodes as Chief Information Officer and provided details on the security enhancements the company has implemented, which includes plans to incorporate MasterCard chip-and-PIN technology across their REDcard portfolio.
Steinhafel’s ouster followed that of Target’s previous CIO Beth Jacob, who resigned in early March as a result of the breach, which was first disclosed on December 19, and is believed to have lasted from at least Black Friday through December 15th, 2013.
Now the ISS is urging Target shareholders to remove directors who were charged with managing risk at the retail giant at the annual shareholder meeting that is scheduled to take place on June 11, and the move would certainly push ownership of enterprise risk up the food chain as far as it can go.
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