(Adds analyst comment, background, share price)
By Shailaja Sharma
June 10 U.S. retailer Target Corp named
General Motors Co executive Brad Maiorino to the newly
created position of chief information security officer, as part
of its plan to tighten its security following a massive data
breach last year.
Maiorino, who will join on June 16, will be responsible for
the company's information security and technology risk strategy,
the third-largest U.S. retailer said on Tuesday.
The appointment was evidence of Target's renewed focus on
securing customer data to prevent a repeat of the data breach,
Telsey Advisory Group analyst Joseph Feldman said.
"While the average customer may not recognize the managerial
changes, they should expect to see enhanced transactional
security in the future," Feldman said.
The appointment comes a day before Target's shareholder
meeting, at which proxy advisory firm Institutional Shareholder
Services has recommended that shareholders vote against seven of
the company's 10 directors, saying the board failed to manage
risks that led to the data breach..
Target was the victim of a cyber attack in December that
resulted in the theft of at least 40 million payment card
numbers and 70 million other pieces of customer data.
Since then, the company has announced plans to overhaul its
information security practices and bolster its technology
management team, including elevating the role of chief
information security officer.
That role is being filled by Maiorino, who held the title of
chief information security and information technology risk
officer at GM.
Maiorino, who previously worked with General Electric Co
, will report to Chief Information Officer Bob DeRodes,
The data breach, among other reasons, cost the
Minneapolis-based company's Chief Information Officer Beth Jacob
and Chief Executive Gregg Steinhafel their jobs.
Shares of the company were flat at $56.86 in extended trade
on Tuesday. They have fallen 18.6 percent in the last 12 months.
(Reporting by Siddharth Cavale in Bangalore and Ben Klayman in
Detriot; Editing by Maju Samuel and Savio D'Souza)