Target Names New CISO; Board Members Re-Elected
MINNEAPOLIS, MN - At Target’s annual shareholders meeting on Wednesday, shareholders voted to re-elect all 10 board members, a move that continues the current search for a new CEO. Shareholders also supported the company in an advisory vote on executive pay.
The vote comes after a prominent advisory firm called on shareholders to throw out a majority of the candidates for their handling of last year’s data breach, according to Wall Street Journal.
In response to that breach, Target appointed Brad Maiorino as its first ever Chief Information Security Officer. Maiorino comes from General Motors where he was that company's chief information security and information technology risk officer Prior to that, he was the chief information security officer at General Electric. He will report to Bob DeRodes, executive vice president and chief information officer at Target.
"Having led this critical function at two of the country's largest companies, Brad is widely recognized as one of the nation's top leaders in the complex, evolving areas of information security and risk," said DeRodes. "As an organization, we have made a commitment to our guests and our team that Target will be a retail leader in information security and protection. We believe Brad is the right person to lead that charge."
Maiorino will join Target effective June 16th and will be responsible for Target’s information security and technology risk strategy. He will help ensure that the company, its guests and team member are protected from both external and internal information security threats.
During the meeting, John Mulligan, Target’s interim CEO, spoke of the challenges the company has faced, including the security breach, a money-losing expansion into Canada and a lack of new shoppers.
"Fortunately, we have the resources and technology to move beyond these challenges," said Mulligan." Target is a great company, whose best days are ahead."
Roxanne Austin, the company’s interim chairwoman, added, “We need to aggressively move Target forward.”
Target did not meet its own expectations, but it did return a 53-cent dividend to shareholders, representing a 21% increase. It also had a larger growth spurt and opened 19 U.S. stores and 24 in Canada, according to the Dallas Business Journal. Target plans to improve its security, sales and customer experience.
At the meeting, the management team outlined the company's top priorities. They plan to increase traffic by bringing in new merchandise and having more promotions and exclusive items from national brands, improve Canadian store performance and shift investment from square footage to technology and supply chain.
In after hours trading, Target shares went up $0.22 to $57.08, an approximate 0.39% increase.
Will Target rebuild its customer base? When will it find a new CEO? Stay tuned to AndNowUKnow to find out.