Last November, I posted on the report released by a Special Committee of the Board of Directors of Equifax created to review the trading of company stock by certain executives following the detection of the massive cyber-intrusion and data breach, but prior to public disclosure of it. The Special Committee found that the executives’ stock sales were hunky-dory.
Today, the SEC begged to differ, filing a complaint in federal district court in Georgia alleging that the former Chief Information Officer of one of the company’s business units committed securities fraud by engaging in illegal insider trading. The former CIO had exercised all his vested Equifax stock options and sold the shares prior to the public announcement of the breach, thereby avoiding losses in excess of $117,000.
Still no word on whether the compensation committee or board will endeavor to claw back some compensation or, possibly, eliminate any remaining payouts from the CIO’s departure. Stay tuned.