Equifax CEO Steps Down In The Wake Of Major Hack

  • Equifax CEO Steps Down In The Wake Of Major Hack

Equifax CEO Steps Down In The Wake Of Major Hack

Equifax's Board of Directors appointed current board member Mark Feidler to serve as Non-Executive Chairman.

In a statement, Smith said he was dedicated to rectifying the issues surrounding the data breach, but he concluded that the company needed new leadership at this point.

Smith has been with the company since 2005.

Rather than rallying on news of a CEO change, Equifax shares were lower by another 1.8% at $103.18 on Tuesday morning. One could also believe the company "predicted" that protective services would "mysteriously" rise in popularity.

Smith previous year earned $14.96-million in total compensation. Smith will remain as an unpaid advisor during the management transition.

The move is unsurprising given the massive public backlash regarding the data breach itself, not to mention more recent insider trading concerns with Equifax coming under fire after three high-level executives sold off part of their stock just days after the breach was discovered internally.

Smith's departure followed two other executive exits.

Appearances in front of the Senate Banking Committee can be treacherous for executives whose companies are in the eye of a political storm. An Equifax spokeswoman tells ISMG that Smith is still scheduled to go to Washington to testify.

AG Healey Signs On To Consumer Credit Protection Bill In Wake Of Equifax Breach

A U.S. House Energy and Commerce Committee spokeswoman said Smith would still testify at an October 3 hearing. "It's not real accountability if the CEO resigns without giving back a nickel in pay and without publicly answering questions", she said in a statement. "There will be consequences".

Equifax is still in the process of trying to figure out how it's going to even begin to fix the absolute disaster that it caused.

An Equifax spokeswoman said the company would continue to cooperate with lawmakers.

These missteps show a pattern of carelessness and greed amidst a data breach that will affect many Americans long into the future.

Dave Webb, Equifax's chief information officer, and chief security officer Susan Mauldin retired earlier this month.

So, What's The Next Move For Equifax? Equifax also announced that its board will implement a search for a new permanent CEO and that it will consider internal and external candidates.

The breach left its customers - who never signed up for the service in the first place - feeling helpless and vulnerable to identify theft.