John Mulligan, Target’s chief financial officer, has been appointed as interim president and chief executive officer. Roxanne S. Austin, a current member of Target’s board of directors, has been appointed as interim non-executive chair of the board.
Steinhafel will serve in an advisory capacity during this transition and, according to a statement by target, “he has graciously agreed.”
Target has retained Korn Ferry to advise the board on a comprehensive CEO search.
It has been a rough year for Target, highlighted by a holiday-season data security breach that affected 70 million customers. That led to a fourth-quarter 2013 sales decrease of 6.6%, and caused Target’s full-year sales to decrease .9%.
Last week, Target has announced a significant new initiative as part of the company’s accelerated transition to chip-and-PIN-enabled REDcards. Target also announced that Bob DeRodes will lead Target’s information technology transformation as executive vice president and CIO. His tenure begins today.
Steinhafel was named president of Target in 1999 after 20 years with the company, in which he held numerous merchandising and operating positions. Steinhafel was named to the board of directors in 2007, became president and chief executive officer in May 2008, and was appointed chairman of the board of directors in January 2009.
According to Forbes.com, Steinhafel earned $1.5 million in base salary in 2012. His total compensation for 2012 was more than $20.6 million.
Target said in its 8-K filing that Steinhafel is entitled to severance, but has not made a final determination on other compensation-related aspects of his departure.