Claiming that the retailer didn’t adequately prepare for or respond to last December’s data breach, and suffered greater financial consequences as a result, the Institutional Shareholder Services has recommended that Target oust seven of its 10 board directors, according to a report in the Wall Street Journal.
The high-profile breach, at the height of the Christmas shopping season, continues to spin out repercussions, not only for the 70 million customers affected, but for Target’s top leadership and financial health. In early May, CEO Gregg Steinhaffel stepped down the same day the company’s new CIO was to begin work (following the March resignation of CIO Beth Jacobs and just two weeks before disappointing first quarter financial results). All were attributed, at least in part, to the retail giant’s breach.
ISS’s recommendations take aim at those Target board members responsible for managing risk.