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Target tech chief resigns as it overhauls security

Published on NewsOK Modified: March 5, 2014 at 5:40 pm •  Published: March 5, 2014
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The compliance officer makes sure that the company meets outside regulatory requirements and internal policies, while the risk assurance division identifies and monitors the risks affecting the business.

Target, which is based in Minneapolis, also said it plans to look outside the company for a chief information security officer and a chief compliance officer. Before the overhaul, information security functions were split among a variety of executives. Target's new chief information security officer will centralize those responsibilities, the company said.

Additionally, Target said it is working with an outside adviser, Promontory Financial Group, to evaluate its technology, structure, processes and talent as part of the overhaul.

"We recognize that the information security environment is evolving rapidly," said Target CEO Gregg Steinhafel.

Meanwhile, Target has been dealing with the fallout from the theft. The company said last week that its fourth-quarter profit fell 46 percent on a revenue decline of 5.3 percent as the breach scared off customers.

Target said sales have been recovering as more time passes, but that it expects business to be muted for some time: It issued a profit outlook for the current quarter and full year that missed Wall Street estimates because it faces hefty costs related to the breach.

In a letter to Steinhafel that was furnished by Target, the outgoing CIO did not mention the data breach, but Jacob said that resigning was a "difficult decision."

During her tenure, Jacob played a big role in bringing Target's online operations in-house a few years ago. She also got attention for overseeing Target's innovation lab that opened last May in San Francisco. The lab looks at futuristic technology, including how wearable gadgets like smart watches might be used in stores.

But during her time as CIO, Target also endured some public relations nightmares related to its online operations. The web site had several outages, particularly the well-publicized launch of a limited collection from Italian designer Missoni in the fall of 2011. The company has worked hard to fix those problems.

Shares of Target ended down 73 cents, or more than 1 percent, to $60.60 on Wednesday. The stock is down a little over 3 percent since the breach was disclosed.

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Follow Anne D'Innocenzio at http://www.Twitter.com/adinnocenzio