Steinhafel Out as Target’s CEO

Gregg SteinhafelFollowing “extensive discussions,” with its board of directors, Gregg Steinhafel has stepped down as chairman, president and CEO of Target.

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.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.