This week there has been some big news in the business world. Target’s CEO is resigning as a result of their big data breach in November, which seems to be the last straw on the camel’s back. Clippers Owner Donald Sterling said some things he shouldn’t have, which got him banned for life by the NBA. Toyota decided to move to Texas to play with the armadillos, leaving some 5,300 workers jobless in California. California proposed legislation that might actually do something about the income inequality gap beyond giving it lip service.
Target CEO Steinhafel to Step Down Following Data Breach
CEO Gregg Steinhafel will be stepping down from his role at Target Corporation. The 35-year Target employee leaves a void temporarily filled by Target Chief Financial Officer John Mulligan while the company seeks a permanent replacement. Amid his decisions that left the company lagging behind the competition in eCommerce, as well as a Canadian expansion that lost the company almost $1 Billion last year, the data breach and it’s handling were the last straw. Read more on Bloomberg.
NBA Bars Clippers Owner Donald Sterling for Life
In case you hadn’t heard, Clippers Owner Donald Sterling made some off-handed remarks that he probably shouldn’t have about those of a different color skin than he. Generally, being racist isn’t a good idea, and even less so if you intend to verbalize it. In this case, it caught him a $2.5 Million fine from the NBA, a lifetime ban, and the organization is working on forcing him to sell the franchise, thus removing him from the sport entirely. Read more on NYTimes.
Toyota’s U.S. Headquarters Will Move to Texas
Toyota has announced this week that it will be moving its entire US operations, which is currently split between California, Kentucky, and New York, to the wide open spaces of Texas. Construction of their new Texas headquarters will begin in the fall of this year and should be ready to house all US corporate operations by the end of 2016. This change, the largest the company has made to North American operations in 50 years, will remove some 5,300 jobs from California and at least 1,000 from Kentucky. There is no word on how many New York jobs will be moved. Read more on CNN Money.
California Proposes Tax on Companies with Large Income Inequality
Last week, the California State Senate passed a bill that would place a large tax on companies whose executives make more than 100 times the wage of their average worker. This bill, which passed with a 5-2 vote, also offers tax breaks to companies who display a more fair distribution of the company’s profit. This bill is aimed to reduce income inequality for companies that have huge profit margins, but pay their employees too little to reasonably live on. The California Senate hopes that this will aim a spotlight on income inequality in the country. Read more on Bloomberg.