https://www.cbsnews.com/news/equifax-data-breach-settlement-disgraced-former-ceo-getting-nearly-20-million-in-bonuses-after-the-hack/
By Stephen Gandel
CBS News
July 23, 2019
The disgraced former CEO of Equifax, which this week agreed to pay $700 million
for claims tied to its massive data breach in 2017, is in line to receive as
much as $19.6 million in stock bonuses since leaving the company following the
disclosure of the consumer-data hack. That's roughly 1,000 times the $20,000
maximum payout that any financially damaged customer can collect from Equifax
as part of the the largest cybersecurity settlement by U.S. regulators in
history.
Former CEO Richard Smith's stock bonuses cover a period that includes the
former executive's performance in 2017, the year in which Equifax botched a
software patch that allowed hackers to enter its databases and obtain the
personal financial information of nearly 150 million Americans. On top of the
stock awards, Equifax has agreed to cover Smith's medical bills for life, a
benefit the company estimates is worth another $103,500, according to a company
filing. He also walked away with a $24 million pension, and $50,000 in tax and
financial planning services.
What's more, none of Smith's pay is likely to be clawed back by the company, a
growing but still rarely triggered compensation practice among large companies
that is meant to hold top executives accountable if their actions later cause
damage to their former employers. Equifax's clawback provision at the time,
which the company called "rigorous," covered accounting fraud but not legal
settlements like the $700 million deal announced this week. Equifax has since
altered its executive clawback provisions to cover damages to the company's
reputation as well.
[...]
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