High Costs of Data Breaches Have Cost Target’s Chairman, President, and CEO Greg Steinhafel His Job

According to an article in the Washington Post (05/05/2014), Target has announced that Greg Steinhafel has agreed to step down immediately as the Chairman, President, and CEO of the company.  According to the Post, this resignation by Mr. Steinhafel has occurred nearly five months after the retailer disclosed its data breaches on December 19, 2013, that, according to the Post, compromised nearly 40 million credit and debit card accounts between November 27, 2013 and December 15, 2013.  The paper reports that on or about January 10, 2014, Target said that hackers also stole personal information from as many as 70 million customers.

It appears that Target is now searching for a chief information security officer and a chief compliance officer.  This recent and dramatic development of one of the larger data breaches in recent history demonstrates the seriousness of data security and the high cost that is involved to companies and their senior executives.

Brian Champion, of Libby O’Brien Kingsley & Champion, LLC, will be one of two presenters at the upcoming Maine State Bar Association Summer Meeting speaking on the issues of privacy and data security facing companies and employers.