The board of directors of Target Corporation (NYSE:TGT) announced that its chairman, president, and CEO Gregg Steinhafel stepped down from his position on Monday.
According to the second largest retailer in the United States, Steinhafel resigned after an extensive discussion with the board of directors. His resignation is effective immediately. He agreed to serve the retailer in an advisory capacity during the transition.
Target Corporation (NYSE:TGT) appointed its chief financial officer, John Mulligan as interim president and CEO. The company also named its current board member, Roxanne S, Austin as interim non-executive chairman. Mulligan and Austin will assume their responsibilities until the appointment of a permanent executive who will lead the retailer. The company hired Korn/Ferry International to help the company search for a new CEO.
Steinhafel served Target Corporation (NYSE:TGT) for 35 years. The company acknowledged his significant contributions and outstanding service during his tenure. “We believe his passion for the team and relentless focus on the guest established Target as a leader in the retail industry. Gregg has created a culture that fosters innovation and supports the development of new ideas,” according to the company in a statement.
The retailer added, “Under his leadership, the company has not only enhanced its ability to execute, but has broadened its strategic horizons. He also led the company through unprecedented challenges, navigating the financial recession, reacting to challenges with Target’s expansion into Canada, and successfully defending the company through a high-profile proxy battle.”
Furthermore, Target Corporation (NYSE:TGT) said Steinhafel held himself personally accountable with the recent data breach that affected millions of consumers last December. The company said. “We are grateful to him for his tireless leadership and will always consider him a member of the Target family.”
In his letter to the board of directors of the company, Steinhafel wrote, “The last several months have tested Target in unprecedented ways. From the beginning, I have been committed to ensuring Target emerges from the data breach a better company, more focused than ever on delivering for our guests.”
The Wall Street Journal reported that Steinhafel will receive an estimated exit package of $37.8 million including cash severance and accelerated vesting of stock based on the closing price of shares of Target Corporation (NYSE:TGT) on Monday as calculated by Verisight compensation consultant, Mark Reilly. The company did not provide any comment regarding Steinhafel’s severance package.
The stock price of Target Corporation (NYSE:TGT) dropped 3.45% to $59.87 per share on Monday.