Credit check pays off for Experian’s £63m man

The Experian boss, whose credit check determines people’s eligibility for loans and credit cards, has landed another great pay package as households grapple with skyrocketing bills.

Brian Cassin earned £7.4 million last year, cementing his position as one of the highest paid CEOs in the FTSE 100 index of leading companies.

The payout brings his total earnings since he took charge nine years ago to more than £63 million.

Experian and its two main rivals, Equifax and TransUnion, hold highly sensitive data on almost every adult in the UK.

They play a vital role in deciding who gets a mortgage, a personal loan, car insurance, or even a regular bank account or cell phone.

The company’s operations are increasingly under scrutiny as access to credit is critical for many families trying to navigate the cost of living crisis.

Credit reference agencies have information about where people live, how much they have borrowed and how quickly loans are repaid.

The data is collected on behalf of banks and other lenders to build a credit score that helps them decide if an applicant is a safe financial bet.

But concerns have been raised about how agencies use the information they have, and its accuracy. Earlier this year, a tribunal ruled that Experian had not handled the personal data of more than five million people transparently, fairly or lawfully because it had not told them it was for direct marketing purposes.

But it rejected claims from the Information Commissioner’s Office (ICO) that Experian’s privacy statement was unclear, that the use of credit reference data for marketing was unfair and that Experian had failed to properly assess its legal basis.

Experian said it was “very pleased” with the decision, which the ICO is appealing.

The Financial Conduct Authority, the city’s watchdog, has also urged credit reporting agencies to improve the quality of their data amid concerns that millions of people could be banned from accessing finance due to inaccurate information. It also examines whether there is a lack of competition in the UK credit rating market.

It is estimated that more than seven million people in the UK are at risk of being locked out of access to affordable financial services due to credit score deficiencies, forcing them instead to turn to more expensive options, such as subprime loans, according to a report from a software company Lexis-Nexis risk solutions.

Another Experian study found that five million people struggle to access financial products and public services because of insufficient information about their creditworthiness.

These so-called ‘credit invisibles’ include people with low incomes, young people without a fixed credit score, recent immigrants and expats, and the elderly who have limited credit and therefore no file.

Cassin, 55, saw his pay package drop from £8.5 million last year as Experian’s profits fell.

Headquartered in Dublin, the bulk of Experian’s business is in North America.

Revenues in the UK and Ireland were up 5 percent to $784 million (£613 million) in the year to March, while profits rose 1 percent to $170 million (£133 million).

Shares, which peaked at just over £36 in early 2022, have since fallen below £30, valuing Experian at £27 billion.