Equifax CEO stepping down in wake of massive hack
Credit reporting agency Equifax is ousting CEO Richard Smith in an effort to clean up the mess left by a damaging data breach that exposed highly sensitive information about 143 million Americans.
The shake-up announced Tuesday comes after Equifax disclosed that hackers exploited a software flaw that the company didn맥스카지노t fix to heist Social Security numbers, birthdates and other personal data that provide the keys to identify theft.
Smith will also step down from the chairman post. He had been Equifax맥스카지노s CEO since 2005. Paulino do Rego Barros Jr. was named interim CEO, while board member Mark Feidler was appointed non-executive chairman.
Equifax said that it will conduct a search for a permanent CEO, considering both internal and external candidates.
While the company said in a statement that Smith was retiring, Equifax said in a regulatory filing that it has not entered into any other arrangement or agreement with Smith in connection with his retirement. He will however, serve as an unpaid adviser to help with the transition process.
The company said in the filing Smith will not receive his annual bonus, and his other potential retirement-related benefits won맥스카지노t be awarded until Equifax concludes an independent review of the data breach.
맥스카지노The cybersecurity incident has affected millions of consumers, and I have been completely dedicated to making this right,맥스카지노 Smith said in a statement. 맥스카지노At this critical juncture, I believe it is in the best interests of the company to have new leadership to move the company forward.맥스카지노
Although many analysts had applauded Equifax맥스카지노s performance under Smith, he and the rest of his management team had come under fire for lax security and its response to the breach.
Smith맥스카지노s departure follows the abrupt retirement of Equifax맥스카지노s chief security officer and chief information officer.
Equifax had tried to appease incensed lawmakers, consumers and investors on September 15 with the unceremonious retirement of its chief security officer and chief information officer who were responsible for managing and protecting the company맥스카지노s technology.
But that wasn맥스카지노t enough, with lawmakers drawing up bills that would impose sweeping reforms on Equifax and its two main rivals, Experian and TransUnion, and Equifax맥스카지노s stock in a downfall that wiped out one third-of the Atlanta company맥스카지노s value — a $5.5 billion setback.
Smith had been scheduled to appear Oct. 3 during Congressional hearing that would likely have turned into a public lambasting. It맥스카지노s not immediately clear whom Equifax will send in Smith맥스카지노s place to face lawmakers맥스카지노 wrath.
The data breach might not had happened if Equifax had responded promptly to a March warning about a known security weakness in a piece of open-source software called Apache Struts. Even though a repair was released, Equifax didn맥스카지노t immediately install it. Digital burglars used the crack in Equifax맥스카지노s computer systems to break in from May 13 through July 30, according to the company맥스카지노s accounting.
Equifax said it didn맥스카지노t then didn맥스카지노t fathom the breadth of information that had been stolen until shortly before issuing a public alert on September 7, triggering the wave of withering condemnations that has led to Smith맥스카지노s departure.
The jobs of other Equifax executives could still be in jeopardy. Three of them, including Equifax맥스카지노s chief financial officer, are under scrutiny for selling some of their company shares for a combined $1.8 million before the breach disclosure hammered Equifax맥스카지노s stock.
Smith맥스카지노s departure also won맥스카지노t make life any easier for most of the U.S. adult population who had their information accessed through no fault of their own, but now have to worry about imposters assuming their identities to obtain credit cards and apply for loans so they can run up huge bills.
Equifax Inc. is providing a year of free protection against identify theft for anyone who wants it, but some lawmakers are trying to pressure the company into extending that offer for the next decade. Some experts say that still isn맥스카지노t enough to guard against identify theft and are advising consumers to put a freeze on their files at Equifax, Experian and TransUnion to prevent anyone from getting a loan under their names.
A credit freeze though creates its own headaches since it also prevents the person making it from getting a new credit card, mortgage, auto loan or even an expensive smartphone paid through monthly installments. It also costs money to do at Experian and TransUnion in most states. Equifax is temporarily waiving its normal fee for credit freeze as another part of its effort make amends for its security breakdown.