Target’s shareholder meeting will be on June 11, and in what appears to be a first, a major shareholder proxy firm is recommending that shareholders oust 7 of 10 directors following a significant cyber breach, citing them for, “not doing enough to ensure [that the company’s] systems were fortified against security threats.”
The firm is specifically pointing the finger at the directors sitting on the company’s audit and corporate-responsibility committees, alleging that “it appears that failure of the committees to ensure appropriate management of these risks set the stage for the data breach, which has resulted in significant losses to the company and its shareholders.”
This call to arms is either a “bold move [which] eloquently underscores cybersecurity as a second-to-none corporate priority for any industry,” or a premature reaction as there isn’t “yet enough evidence that the data breach was due to any neglect by Target’s board or executives.”
How This Affects You
Even firms that do not handle credit card or personal health information, two incendiary factors when considering cyber exposure, cybersecurity is a serious issue by any company. Depending on how the Target shareholders vote, there may be new and unexpected exposures that companies have not considered in the past.
Hackers can either steal valuable information, including trade secrets, or potentially interfere in automated processes from manufacturing to resource extraction.
Find this hard to believe? Consider that hackers shut down a floating oil rig by tilting it, and that Somali pirates help select their targets by viewing navigational data online, leading some ships to either turn off their navigational devices, or fake the data so it looks like they’re somewhere else.