The appointment of 16-year Target veteran John Mulligan as the company’s new CFO makes a lot of sense as Target will benefit from continuity of leadership in its finance department.
Mulligan previously served as SVP finance and was responsible for treasury, internal and external financial reporting and financial operations. In his new roles as EVP and CFO, Mulligan will retain those responsibilities while adding oversight of financial planning and analysis, financial operations, tax, assurance, investor relations and something called flight services. Mulligan is filling the void created by the retirement of 18-year veteran Doug Scovanner, a move that caught Wall Street by surprise.
“John brings significant financial experience and strategic perspective to this new role,” said Target chairman, president and CEO Gregg Steinhafel. “I am confident that he will sustain the financial discipline and stewardship Target has enjoyed during Doug’s tenure and believe John’s strong leadership and record of performance make him a valuable addition to our Target executive team.”
Scovanner’s last day is March 31, but after that he will remain with the company in a part-time capacity until early November 2012 to, “continue to support Target’s board and executive leadership in the development and execution of corporate strategy, including remaining engaged in external relationships with investors, financial institutions and ratings agencies.”
Those efforts are designed to ensure a seamless transition of responsibilities to Mulligan who wasn’t simply next in line for the CFO job, but rather his selection was the result of a comprehensive search which included internal and external candidates, according to the company.
In the meantime, the company also said that Terry Scully, president Target financial and retail services will report directly to Steinhafel, a move it said underscores the company’s commitment to pursue a sale of its credit card receivables on appropriate terms.