But the executive has been granted a 73,392-share bonus that can be redeemed early next year as part of a long-term incentive program that was set up nearly a decade ago. Although this does pale in comparison to the $52 million in stock and other retirement benefits he has accrued over his career at Equifax.
If Smith is found to be personally responsible for the data breach then his financial responsibility will be very little, Gandel added. But there is more to the story — Smith could receive another $11 million in stock bonuses at the end of 2018.
"Smith's exit pay, and particularly the looming bonus payments, follows an unfortunately well-worn pattern: Something egregious happens at a company," Gandel wrote. "Someone has to take the inevitable hit, normally the CEO, who then walks into the sunset with millions of dollars."
Unfortunately, so long as executive pay in America is "full of carrots, and absent of sticks," these seemingly unfair scenarios will merely play out over and over again.
Related Links: Cramer Adds Equifax's CEO To His 'Wall Of Shame' With Equifax Down 30%, Is The Stock Finally Fairly Priced?© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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