ISS Recommends Against Five Equifax Directors

(RTTNews) - Proxy advisory firm Institutional Shareholder Services Inc. recommended Equifax Inc.'s (EFX) investors to vote against the re-election of five Equifax board members, including the board chairman, all of whom were on the board's technology committee and some who were on the audit committee at the time of the company's massive cybersecurity breach last year.

The five board members in their roles on the technology committee "had clear lines of responsibility for risk management related to technology security," ISS's report states. The breach and Equifax's failure to quickly notify the public "suggest a failure to adequately oversee some of the most significant risks facing the company."

ISS advised shareholders to vote against the re-election of Chairman Mark Feidler, Thomas Hough, John McKinley, Elane Stock and Mark Templeton. All five were on the technology committee at the time of the breach. Mr. Hough, Mr. McKinley and Mr. Templeton were on the audit committee then.

ISS's report follows a recommendation by CtW Investment Group, an adviser to union pension funds that are invested in Equifax, to vote against the re-election of three board members, Mr. Feidler, Mr. McKinley and Mr. Templeton. CtW in a letter sent to shareholders last week said that the three board members failed to act on repeated warnings of cybersecurity issues at Equifax before its breach.

Equifax's annual shareholder meeting is scheduled for May 3. Three board members, Robert Daleo, Walter Driver and Phillip Humann, aren't up for re-election, according to Equifax's proxy. Mr. Driver and Mr. Humann have reached the mandatory retirement age and aren't eligible for re-election at the annual meeting. Mr. Daleo has decided not to run for re-election.