Equifax CEO Quits Following Massive Data Breach
Almost three weeks after Equifax said that hackers had gained access to the sensitive information of 143 million Americans, the credit-reporting company's CEO has quit.
Equifax said on Tuesday morning that Richard Smith, who had been leading the Atlanta-based company since 2005, was stepping down. Effective immediately, the 57-year-old will be replaced as interim CEO by Paulino do Rego Barros Jr., who was most recently the company's Asia-Pacific region president. Equifax said that it plans to conduct a search for a new permanent CEO, and it's open to candidates from both inside and outside the company.
"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.
According to Reuters, this announcement comes one week before Smith was expected to testify before US congressional committees about the cyberattack. The company is also under investigation by the US Federal Trade Commission. Its chief information officer and chief security officer also stepped down after the hack became public.
Bloomberg reported Tuesday that Smith might get a payout worth many millions of dollars after he quit. Analyst Andrew Jeffrey, who covers Equifax for investment bank SunTrust Robinson Humphrey, was quoted by Bloomberg as saying in as note to investors that Smith's departure is an "incremental negative" for Equifax because the outgoing CEO "has been integral to Equifax's impressive decade-plus long growth." Bloomberg also reported that Equifx shares have fallen 27 percent on Wall Street since the hack was revealed.
Equifax has faced backlash from both the public and government officials for how the situation was handled. A perception that Equifax neglected to care for sensitive information that included Social Security numbers, exposing people to possible serious consequences like identity theft, was compounded by ambiguous wording hinting that if someone signed up for the Equifax TrustedID Premier service after the hack, they would waive some of their legal rights. While the company has backtracked on that language, public backlash has been strong.
"Speaking for everyone on the board, I sincerely apologize," Mark Feidler, the Equifax board's new chairman, said in the company statement. "We have formed a special committee of the board to focus on the issues arising from the incident and to ensure that all appropriate actions are taken."
If you're not sure if you're affected by the hack, it could be worth freezing your credit scores in order to keep your information secure.
TPG featured card
Rewards
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month
Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month