Menu
Equifax CEO booted out following massive cyber breach

Equifax CEO booted out following massive cyber breach

Equifax being investigated by the U.S. Federal Trade Commission, and faces a barrage of questions from Congress

Equifax said on Tuesday its CEO Richard Smith will step down and forgo his annual bonus, a move that came weeks into a mounting crisis at the credit-monitoring firm stemming from a massive data breach.

Equifax is being investigated by the U.S. Federal Trade Commission, and faces a barrage of questions from Congress and public ire over what has widely been viewed as a bungled response to a hack that exposed the personal details of up to 143 million U.S. consumers.

The credit-monitoring firm disclosed on 7 September that hackers had access to its systems between mid-May and July.

The announcement that Smith, 57, would depart came ten days after the company said its chief information officer and chief security officer were retiring.

Shares of Equifax were down 1.6 percent at $103.35 early on Tuesday.

"At this critical juncture, I believe it is in the best interests of the company to have new leadership to move the company forward," Smith said in a statement.

Paulino do Rego Barros, 61, who was most recently president of Equifax's Asia-Pacific operations, will be interim CEO.

The announcement comes a week before Smith was expected to testify before multiple congressional committees about the cyber attack.

A spokeswoman for the U.S. House Energy and Commerce Committee said Smith, whose retirement was effective on Tuesday, would still testify before the panel on 3 October. The Senate Banking Committee did not immediately respond when asked if Smith would appear as scheduled on 4 October.

"Rick Smith is scheduled to testify before Congress. It's up to the committee to decide if they want another executive," an Equifax spokeswoman said in an emailed statement. "We will fully cooperate with Congress, as we have since this cybersecurity incident was first disclosed."

The company and Smith agreed that Equifax will defer any decision related to "any obligations or benefits" owed to him until the company's board completes an independent review of the breach, according to a regulatory filing. Smith earned a total of US$14.96 million in 2016.

Equifax shares have fallen more than 30 per cent since the disclosure of the breach amid mounting criticism from lawmakers, regulators and consumers about the hack and the company’s response to it.

In 2014, Target CEO Greg Steinhafel left the retailer after it was revealed hackers had accessed credit card and personal information belonging to tens of millions of shoppers.

(Reporting by John McCrank in New York; Dustin Volz in Washinton and Supantha Mukherjee in Bengaluru; Editing by Sai Sachin Ravikumar and Meredith Mazzilli)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Equifax

Featured

Slideshows

Tech industry comes out in force as Lancom turns 30

Tech industry comes out in force as Lancom turns 30

A host of leading vendors and customers came together to celebrate the birthday of Lancom Technology in New Zealand, as the technology provider turned 30.

Tech industry comes out in force as Lancom turns 30
The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Show Comments