ISS calls Target Corp. shareholders to replace seven board members

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Target Corp. shareholders were urged by proxy advisory firm Institutional Shareholder Services (ISS) to vote against majority of the company’s 10 board of directors because of their failings in preventing the data breach that the retailer suffered the holiday season.

ISS, which advises large investors such as mutual funds on how to vote on corporate issues, said shareholders should focus on directors who serve on committees such as audit and corporate responsibility. Those committees are tasked to oversee and manage risk, and the data breach exposed the Target’s vulnerability against threats by computer hackers.

Target has been trying to bounce back after 40 million payment-card numbers were stolen by hackers during the key holiday shopping season. The company has since replaced its chief executive officer and hired a new chief information officer.

The second-largest U.S. discount retailer did not immediately offer a comment about the ISS report, which also notes Target’s acknowledgement for the need of tighter cybersecurity protocols and improved internal monitoring of potential risks.

The company will hold its annual meeting on June 11.

Earlier this month, Chief Executive Gregg Steinhafel stepped down as part of his handling of the incident. The company currently has an interim CEO and a separate interim chairman.

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