May 05, 2014

Target CEO resigns in wake of breach

May 6, 2014 – Target Corporation CEO Gregg Steinhafel, who the company says held himself "accountable" for the massive data breach in 2013, resigned effective immediately on Monday.

Target's CFO John Mulligan will serve as interim president and CEO until a replacement is named. According to a company statement, after the breach, Steinhafel "held himself personally accountable and pledged that Target would emerge a better company. We are grateful to him for his tireless leadership."

NAFCU was the first financial trade association to call for national data security standards for retailers in the wake of the breach. Credit unions and banks are already subject to such standards under the Gramm-Leach-Bliley Act. NAFCU estimates the Target breach could end up costing the credit union industry almost $30 million.

Last week, a White House working group on big data and privacy recommended passing a national data breach standard, as NAFCU has advocated. The recommendation was part of a report resulting from a 90-day review of data security issues.