Target removes CEO in wake of cyber attack

Target Corp. removed Chairman and Chief Executive Gregg Steinhafel on Monday in the wake of a devastating data breach that hurt the No. 3 U.S. retailer's profits, shook customer confidence in the company and prompted congressional hearings.

The departure of the 35-year company veteran also follows Target's botched multi-billion dollar expansion into Canada.

'After extensive discussions, the board and Gregg Steinhafel have decided that now is the right time for new leadership at Target,” the company's board said in a statement.

Steinhafel, 59, had been Target's CEO since 2008.

The Minneapolis-based company named Chief Financial Officer John Mulligan as interim chief executive, and Roxanne Austin, a member of Target's board of directors, as interim non-executive chair of the board.

Brian Sozzi, chief executive of Belus Capital Advisors, said he thought Steinhafel's exit was a few months overdue.

'I think the news today reflects Target's initiative to completely get behind this issue,” he said, referring to the data breach.

Target disclosed in December that a cyber attack had resulted in the theft of at least 40 million payment card numbers and 70 million other pieces of customer data.

Mulligan has been the company's chief spokesman on the issue, testifying at several congressional hearings where he was grilled for details about Target's security operations, how it learned of the breach and how quickly it notified the public.

Target spokeswoman Dustee Jenkins said Mulligan had been selected as interim CEO because of his role in helping company respond to the breach. 'We believe he is suited for this. He has played a key role in the recovery efforts,” she said.

The company said it has hired executive recruiting firm Korn Ferry to help the board find a new CEO.