Target SVP Mulligan to Become Next CFO
Target Corporation said Tuesday that it has selected Senior Vice President of Finance John Mulligan to be its next chief financial officer (CFO)-a transition that will take effect April 1.
Target said that its announcement concludes a CFO search that included both internal and external candidates. Mulligan, 46, succeeds Doug Scovanner, the Minneapolis-based retailer's CFO and executive vice president for the past 18 years. Scovanner said in November that he planned to retire at the end of March.
Mulligan has been with Target for 16 years. During that period, he's held leadership positions in finance, Target.com, and human resources. As senior vice president of finance, he was responsible for treasury, internal and external financial reporting, and financial operations. In his new role, he'll take on the added responsibilities of financial planning and analysis, tax, assurance, investor relations, and flight services.
Although Scovanner will step down from his official role on March 31, Target said that he'll remain with the company in a part-time capacity until early November 2012 as Mulligan transitions into his new position. Between April and November, Scovanner will continue to support executive leadership efforts and will remain in external relationships with investors, financial institutions, and ratings agencies.
Scovanner's retirement comes less than six months after the departures of two other top Target executives. In early October, Chief Marketing Officer Michael Francis-who had been selected to lead the retailer's expansion into Canada-abruptly left his post to join J.C. Penney Company, Inc. Later that same month, Target.com President Steve Eastman left the company “to pursue other opportunities.”
Separate from the CFO transition, Target said Tuesday that as of April 1, Terry Scully-president of Target's financial and retail services division-will report directly to Target Chairman, President, and CEO Gregg Steinhafel. Scully now reports to Scovanner, and Target said that the change underscores its commitment to pursue a sale of its credit card receivables.
In January 2011, Target said that it intended to sell its credit card receivables portfolio-which manages the balances that credit card holders owe the company. But last week, the company announced that it has temporarily suspended its efforts to sell the portfolio and plans to re-engage in discussions with potential partners later this year. The retailer believes that a sale could occur in late 2012 or early 2013-about a year later than originally expected.
Target serves customers at 1,767 stores and on its Web site-and it will open its first Canadian stores in 2013. It is Minnesota's second-largest public company based on revenue, which totaled $67.4 billion in the fiscal year that ended in January 2011.