Share “ISS seeks ouster of most of Target's board”

ISS seeks ouster of most of Target's board

Published on NewsOK Modified: May 28, 2014 at 12:58 pm •  Published: May 28, 2014

NEW YORK (AP) — A prominent proxy advisory firm has recommended that Target shareholders vote out seven of its 10 board members after a massive pre-Christmas data breach.

Institutional Shareholder Services on Wednesday targeted those members who serve on the company's audit and corporate responsibility committee. Included on that list are Anne Mulcahy, former chair and CEO at Xerox, and James A. Johnson, who was once the CEO at Fannie Mae.

ISS also recommended that shareholders should vote to separate the roles of chairman and chief executive.

The data theft, which led to the breach of millions of debit and credit card accounts, has cut into profits and sales at the nation's third largest retailer. Target, based in Minneapolis, cut its annual profit outlook last week after a 16 percent decline in first-quarter earnings. That followed a 46 percent drop in fourth-quarter profits.

The board fired CEO Gregg Steinhafel in early May. The company's chief financial officer John Mulligan is acting CEO, but Target is still searching for a new leader. The company's chief information officer Beth Jacobs abruptly resigned in March. Last month, it named outsider Bob DeRodes, who has 40 years of experience in information technology, as its new chief information officer.

In the wake of the breach, the company is overhauling its security and technology departments. The company has also been accelerating a $100 million plan to roll out chip-based credit card technology, which is considered more secure, in all of its nearly 1,800 stores.

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