According to an article in the Wall Street Journal, Institutional Shareholder Services (ISS), which advises big shareholders of how to vote on corporate ballots, has recommended to Target shareholders to oust seven of the company’s ten directors for lack of oversight. The ISS claims that these directors failed to insure that Target’s systems were secured against cyber threats. The recommendation centered on directors who serve on Target’s audit and corporate-responsibility committees, which are tasked with overseeing and managing risk.
The Target data breach knocked off 20% of its quarterly profit for the 4th quarter as sales declined by 2.5% causing losses to shareholders.
The ISS action puts corporate board members on notice to treat the risks associated with cyber attacks seriously, especially for firms which process and store vast amounts of credit card and sensitive personal data.
Source: Wall Street Journal