Marissa Mayer, Yahoo’s current CEO got her pay docked. She is giving up the 2016 bonus and 2017 award stock, which sums up to a total of $14 million.This was due to the breach that took place in the customer database of the internet giant.
The incursion news was first reported by Record. The breach revealed a lot of sensitive information of the customers, impacting more than millions of them.
A Committee of Independent Interests said that Mayer didn’t mean to run a ship with loose security and that this didn’t conclude that the relevant information suppression was intentional.
Ron Bell, head lawyer of Yahoo was also bounced because he wasn’t doing his job. The company took a note that the legal team did have enough information to conduct an inquiry in the year 2014, but they didn’t pursue it.
Most people in Yahoo believe that the board and Mayer should take blame of the breach, but the head lawyer suffered instead.
This announcement’s reaction on the social media was clearly pro-Bell and anti-Mayer. A lot of comments surfaced from people who had worked with Bell.
The Chief Legal Officer of Twitter, Vijaya Gadde said that he doesn’t know what actually happened at Yahoo, but he also knew that blaming the lawyers is easy. He also knew that Ron Bell was a really good lawyer. Scott Moore, a former executive of Yahoo, also said that this move was ridiculous and he knew Ron Bell is a good man and a great lawyer. He also wasn’t in charge of security as a lawyer.
Both of them speak the truth. A lot of sources who are close to this situation said the ways Yahoo was handling things after finding out about the breaches were not as clear cut as their determination in the filing today. A lot of security execs also left the company during this period, including Alex Stamos, Chief Information Security Officer of Yahoo who shifted to Facebook, August 2015. This was after a lot of clashes with Mayer on issues of security.
The company’s filings had a few key points: The investigation revealed that the team handling information security had enough information about the incidents in 2016, 2015 and 2014. The legal staff and senior execs knew that some actor who was state sponsored had accessed accounts by hacking the tool for account management. Remedial actions were taken by notifying the 26 users and the company consulted with authorities. A lot of security measures were implemented, but execs didn’t act upon the knowledge.
This news did one good thing of clearing the way for the deal of Yahoo’s acquisition, which had already seen a discount of $350 million discount for this breach.