Hypothetically, say you are the CEO of a big tech company during a major breach. What would be an appropriate fallout?
Maybe no bonus? That is what Yahoo is thinking. And CEO Marissa Mayer is taking it a step further, asking that her bonus be distributed to Yahoo employees. But is this a real loss for Mayer?
In IT Blogwatch, we could use an extra couple million dollars.
So what is going on? Dan Goodin has some background:
Yahoo CEO Marissa Mayer said she'll forgo her 2016 bonus and any stock award for this year after the company admitted it failed to properly investigate...attacks that compromised more than a billion user accounts.
So is this a real hit for Mayer? And what is going to happen to that money? Michael Liedtke has some more info:
Yahoo's board said it decided to withhold a cash bonus that otherwise would have been paid to her...Mayer said she wants the board to distribute her bonus to Yahoo's entire workforce...The board didn't say if it would do so.
Losing her bonus and annual stock award probably won't be too painful...Mayer...is already rich after working for more than a decade as a top executive at Google and then as Yahoo's CEO for the past 4 1/2 years. She is also in line for a $44 million severance package if she doesn't go to work for Verizon after the sale closes.
But distributing her bonus to Yahoo employees -- that seems like a generous thing to do, right? Kara Swisher has some insight into the matter:
Mayer's...cash bonus...and...equity...appears to be $2 million in bonus and up to $12 million in stock...it is the corporate equivalent of a minor speeding ticket...Given Yahoo has about 8,500 full-time employees now, that comes to about $235 a person.
Well, still a symbolic gesture, I guess. But about that failed response to the hacks -- what exactly has been determined? Michael Kan fills us in:
Yahoo...reported a massive data breach involving 500 million user accounts in September, [but] knew an intrusion had occurred back in 2014...even as the company took some remedial actions, such as notifying 26 users targeted...and adding new security features, some senior executives failed to comprehend or investigate the incident further.
So besides Mayer taking a hit on her bonus, what other fallout resulted from the breach? Asha McLean has some more details:
To date, approximately 43 putative consumer class action lawsuits have been filed against Yahoo...relating to the security incidents.
Last month, Yahoo and Verizon agreed to reduce the price of the upcoming acquisition deal by $350 million in the wake of the...cyberattacks, with both companies expected to share some legal and regulatory liabilities after the deal closes.
What about people? Anyone else losing their bonus -- or anything else? Doreen McCallaster is in the know:
In addition to the action against...Mayer, the company's general counsel resigned without severance pay for his department's response to the security lapses...Yahoo's top security officer at the time of the 2014 breach left the company in 2015.
So how are people reacting to Mayer losing her bonus? Kevin Dempsey has a suggestion:
She should have worked for a bank they give bonuses even after causing a depression.