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Investing.com -- Shares in LOCK fell slightly in after-hours trading after the identity theft protection company announced that company president Hilary Schneider will succeed CEO Todd Davis, effective on March 1.
Also on that date, Davis, one of the founder's of the company will become executive vice chairman of the Board of Directors, while Roy Guthrie, the company's lead director, will become chairman. Guthrie has served on LifeLock's board since October, 2012.
The announcement comes several weeks after the company agreed to pay a $100 million fine to the U.S. Federal Trade Commission (FTC) to settle contempt charges that it violated the terms of a 2010 federal court order. From October 2012 through March, 2014, LifeLock failed to establish a comprehensive information security program to protect users' personal information such as their social security, credit card and bank account numbers, according to the FTC. In addition, the FTC alleged that LifeLock engaged in false advertising by promising customers that it would send alerts as soon as it received an indication that a consumer could be a victim of identity theft.
The $100 million fine is the largest monetary award ever obtained by the FTC in an enforcement action.
LifeLock also announced its preliminary results for the fourth quarter on Wednesday, which Davis said will demonstrate the company's 43rd consecutive quarter of sequential revenue growth. For the three-month period, LifeLock expects to report sales growth that will reach double-digits.
“With LifeLock well positioned for continued success, the FTC matter concluded, and Hilary ready to assume the role of CEO, this is the right time to move forward with this succession plan,” said Davis. “The commitment of the LifeLock team to protecting our members’ identities continues to fuel our momentum."
Prior to joining LifeLock in 2012, Schneider served as executive vice president at Yahoo! Inc (O:YHOO) Americas, where she was responsible for Yahoo's North and South American business. Schneider also spent time at Knight Ridder, where she held the title of CEO of the newspaper's digital division.
"It is an honor to succeed Todd as CEO of LifeLock and I am excited about our company’s future," said Schneider. “Only a few years ago, online identity was a name, address, and Social Security number; today, it is the highly detailed picture created by a consumer’s engagement on social media, online and mobile shopping and banking, and the records that doctors, corporations and others store online."
Shares in LifeLock fell 0.29 or 2.18% to 13.12 in after-hours.