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If I was a CIO of a large company, I would not spend 4 months in jail just to gain $500k extra. Not worth it.

StudentStuff 7y ago
He cashed out $1 million in shares not knowing if these shares would become near worthless shortly after selling them. Considering it was a $175k fine, he eliminated serious risk to his personal finances. Many rational people would do what this CIO did given this minor fine and brief prison sentence.
- raverbashing 7y ago
  "eliminated serious risk" that's textbook beancounter thinking What's the impact of this conviction in his future earnings?
- Zombieball 7y ago
  Maybe I am overestimating what he earned in a year. Tried a quick search to figure out what % of his take home income this was. I am not sure at what point I would start to consider 4 months in jail for insider trading “worth it” (again this was a plea deal, could’ve been higher). If all your personal wealth is tied up in a single company’s stock then you obviously run a risk of losing it all. The solution to that is diversifying your portfolio, not insider trading.
  - Sebguer 7y ago
    Their current CISO makes 3.9 million in total comp: https://www1.salary.com/Jamil-Farshchi-Salary-Bonus-Stock-Options-for-EQUIFAX-INC.html https://www1.salary.com/Jamil-Farshchi-Salary-Bonus-Stock-Op...
- godzillabrennus 7y ago
  His lifetime earnings will now be greatly diminished as a felon. He would likely have spent a fortune on legal fees before accepting this plea. He made a very stupid decision and it will impact the remainder of his life.
  - human20190310 7y ago
    His potential lifetime earnings were probably already suffering as a result of being a CIO who presided over a massive data breach.
    - g051051 7y ago
      He was CIO of one of the business units (Equifax U.S. Information Solutions), not the whole company. That guy (Dave Webb) resigned after the breach, and Jun Ying was going to replace him.
    - true_tuna 7y ago
      I doubt that. Nobody seemed to care that he really shat the bed.
  - true_tuna 7y ago
    America, where the legal fees hurt worse than the punishment.
    - nojvek 7y ago
      Well, it’s the same for puny things. Insurance spike hurts way more than an over speeding fine.
- Macross8299 7y ago
  It really depends on how precarious he thought his position was after the breach. If his career as an executive would not be significantly harmed by breach, trading 4 months in jail and 5 million+ future career earnings as an executive for a 500k payday is not something rational people do, IMHO.
ergocoder 7y ago
Yeah, not really worth it. A rank-and-file engineer at Google already earns $200k to $500k. This is a C-level at a large company. I'd say $500K isn't much. Very dumb decision by CIO, to be honest.

He cashed out $1 million in shares not knowing if these shares would become near worthless shortly after selling them. Considering it was a $175k fine, he eliminated serious risk to his personal finances. Many rational people would do what this CIO did given this minor fine and brief prison sentence.

raverbashing 7y ago
"eliminated serious risk" that's textbook beancounter thinking What's the impact of this conviction in his future earnings?
Zombieball 7y ago
Maybe I am overestimating what he earned in a year. Tried a quick search to figure out what % of his take home income this was. I am not sure at what point I would start to consider 4 months in jail for insider trading “worth it” (again this was a plea deal, could’ve been higher). If all your personal wealth is tied up in a single company’s stock then you obviously run a risk of losing it all. The solution to that is diversifying your portfolio, not insider trading.
- Sebguer 7y ago
  Their current CISO makes 3.9 million in total comp: https://www1.salary.com/Jamil-Farshchi-Salary-Bonus-Stock-Options-for-EQUIFAX-INC.html https://www1.salary.com/Jamil-Farshchi-Salary-Bonus-Stock-Op...
godzillabrennus 7y ago
His lifetime earnings will now be greatly diminished as a felon. He would likely have spent a fortune on legal fees before accepting this plea. He made a very stupid decision and it will impact the remainder of his life.
- human20190310 7y ago
  His potential lifetime earnings were probably already suffering as a result of being a CIO who presided over a massive data breach.
  - g051051 7y ago
    He was CIO of one of the business units (Equifax U.S. Information Solutions), not the whole company. That guy (Dave Webb) resigned after the breach, and Jun Ying was going to replace him.
  - true_tuna 7y ago
    I doubt that. Nobody seemed to care that he really shat the bed.
- true_tuna 7y ago
  America, where the legal fees hurt worse than the punishment.
  - nojvek 7y ago
    Well, it’s the same for puny things. Insurance spike hurts way more than an over speeding fine.
Macross8299 7y ago
It really depends on how precarious he thought his position was after the breach. If his career as an executive would not be significantly harmed by breach, trading 4 months in jail and 5 million+ future career earnings as an executive for a 500k payday is not something rational people do, IMHO.

ergocoder 7y ago

Yeah, not really worth it. A rank-and-file engineer at Google already earns $200k to $500k. This is a C-level at a large company. I'd say $500K isn't much. Very dumb decision by CIO, to be honest.