Target CEO Resigns in Wake of Data Breach

Written by Kara Seymour

Target’s CEO has resigned in the wake of a massive data breach that impacted as many as 40 million customers.

Gregg Steinhafel, who has been CEO since 2008, has stepped down, the company announced Monday.

“Now is the right time for new leadership at Target,” the company’s board of directors announced in a statement. John Mulligan, Target’s chief financial officer, has been appointed as interim president and chief executive officer.  

The resignation comes just five months after a massive data breach in late 2013 that impacted as many as 40 million accounts. Hackers gained access to Target's system, gaining information about customers who used their debit or credit cardsat cash registers between Nov. 27 and Dec. 15.

Steinhafel is the first boss of a major corporation to lose his job over a customer data breach, the Associated Press reported.

In its statement, the board said it is “deeply grateful” to Steinhafel for his “significant contributions and outstanding service” during his 35-year career with the company.  “We believe his passion for the team and relentless focus on the guest have established Target as a leader in the retail industry,” the statement said.

The board acknowledged that Steinhafel “held himself personally accountable” for the data breach. “We are grateful to him for his tireless leadership and will always consider him a member of the Target family."

USA Today reported Steinhafel could receive as much as $55 million in severance and deferred compensation.