1Password’s New Co-CEO Model to Drive Growth, Security Focus

1Password has promoted a former Qualtrics and Barracuda executive to the co-CEO role to better secure unmanaged devices and applications as work becomes increasingly decentralized.

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The Toronto-based identity security vendor said having David Faugno spearhead operational leadership will help Jeff Shiner – who’s been CEO since 2012 – focus on product and vision, specifically around expanding extended access management to meet the evolving security needs of a dispersed workforce. Faugno will focus on partner ecosystem expansion, international reach and increased client support.

“It’s that combination of looking for the opportunity where I can spend more time focusing on product, focusing on our vision, focusing on continuing to grow the extended access management platform, combined with not only David’s skills, but David himself personally, that gave me the confidence to ask him to be the co-CEO,” Shiner told Information Security Media Group.

Faugno joined 1Password in September 2023 as president and chief operating officer after six years as Qualtrics’ CFO – where he led the firm’s $8 billion sale to SAP – and nearly 11 years as CFO at Barracuda, where he led the company’s $75 million IPO. The decision to transition to a co-CEO model stems from 1Password’s rapid growth and the need for specialized product and operational leadership focus (see: 1Password Acquires Kolide, Aiming to Enhance Device Security).

Expanding into Extended Access Management

Both Shiner and Faugno emphasized the importance of trust, complementary skills and aligned decision-making, noting that having a clear delineation of responsibilities will help avoid common challenges in co-CEO models. Several cybersecurity vendors tried co-CEOs over the years including Darktrace, IronNet, Lacework and Tanium, but none lasted exceptionally long before the firm returned to a sole CEO setup.

“Our ability to work together, our ability to see the same path forward but with completely different focuses and skill sets has been a really awesome opportunity from my perspective, because it allows me to spend more of my time focusing on the product and the vision knowing that David’s got all of the opportunity to drive us from an operational excellence perspective,” Shiner said.

Shiner said the shift in work environments has created a demand for extended access management, enabling employees to access company resources securely from various locations and devices, including personal devices. Extended access management addresses the challenge of securing personal devices without traditional device management, aiding police enforcement without compromising user privacy.

“We’re look at extending access management into those unknown and unmanaged apps and those unknown and unmanaged devices so that people like us can continue to be productive in our workday, continue to use the devices that help us be productive, continue to use the apps that we need to use to be productive, but that the security teams on the business can put some rules around that,” Shiner said.

Shiner said 1Password is committed to becoming a core component of CISOs’ security infrastructure through strategic partnerships and new product enhancements, addressing concerns like credential sprawl and device compliance. As breaches from compromised credentials and devices become more common, Shiner said 1Password’s products aim to be part of organizations’ security architecture.

“The vast majority of breaches come from compromised machines with compromised credentials,” Shiner said. “There’s a real problem there that’s getting worse, the sprawl of shadow IT continues to grow. It becomes an increasingly large problem. The quicker that we can actually comprehensively solve those problems for businesses, the more value we’re going to have for that CISO community.”

Meeting MSP Market Needs Around Identity Security

1Password’s acquisition of Kolide accelerates the extended access management roadmap by integrating device trust and end-user remediation, allowing for better control over unmanaged personal devices. Kolide’s ability to assess device security at login and guide users through security compliance empowers organizations with enhancing enterprise security, reducing help desk dependency, and fostering trust, he said.

“You’re really turbo-charging the organization’s ability to be secure, because now you’ve enrolled all of the end users in the process of good security hygiene, and not done it in a way that is Big Brother,” Shiner said. “It’s been a really important element for us, and that message resonates so strongly with the CISOs, who are constantly playing whack a mole.”

Faugno, meanwhile, plans to focus on facilitating 1Password’s expansion into the MSP channel, where he said the company plans to support mid-sized businesses through multi-tenancy features and reach a broader range of customers more efficiently. Faugno also plans to double down on partnerships with companies like CrowdStrike and Microsoft and introduce greater focus on expanding into Europe.

“The vast majority of mid-sized businesses and smaller – many of those use an outsourced IT model – and they manage their infrastructure through MSPs,” Faugno said. “And so now, we’ve unlocked that whole universe of folks, and we’re super excited about what the MSP team we built can do to work with our partners there.”

Both Shiner and Faugno see annual recurring revenue, customer retention and increased adoption by larger enterprise clients as key metrics. Annual recurring revenue growth, especially among business clients, is a significant focus, with 1Password maintaining strong retention and steady cash flow. Shiner emphasized the importance of user satisfaction, citing customer affinity for 1Password’s technology.

“Build a good product and support the heck out of your customers is how we’ve always grown,” Shiner said. “It’s how I’ve always looked at the business. It’s where I want us to focus. We’re selling to businesses, but we’re being used by people.”