UPDATE 4-Target's decision to remove CEO rattles investors

Mon May 5, 2014 5:30pm EDT
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* Gregg Steinhafel to also step down as chairman

* CFO John Mulligan to fill in as interim CEO

* Steinhafel also oversaw troubled expansion into Canada

* Shares fall as much as 3 pct (Changes throughout)

By Susan Taylor, Siddharth Cavale and Jim Finkle

May 5 (Reuters) - Target Corp's decision to oust Gregg Steinhafel as chairman and chief executive some five months after a massive data breach has triggered concerns the No. 3 U.S. retailer might have even more bad news for investors.

The board of directors removed Steinhafel on Monday, saying it wants new leadership to help restore consumer confidence in the No. 2 U.S. discount retailer.

"You got to wonder what prompted it now. What else will come to light," said Dieter Waizenegger, executive director, of CtW Investment Group, which advises union pension funds with about $250 billion under management, including those owning about 3.3 million Target shares.

The massive data breach and last year's misguided push into Canada have already hurt profit and revenue. Analysts and shareholders expect to hear more of the same when the company reports results May 21 for the quarter ended May 3 and worry that the company could disclose other problems as well.   Continued...