Marissa Mayer will Forgo her Bonus and Equity Grants Worth $2 million

Marissa Mayer, the CEO of Yahoo will forgo her 2016 bonus and equity grants worth $2 million from the company following the consequences of board investigation of 2014 hack affecting 1 billion user accounts. The internal investigation on the massive hack attacks of 2014 revealed to the company that they failed to handle the hack attempts productively.

2014 Massive Hack Attack

The senior executives and concerned some legal staff were aware of the hack in 2014 and also they knew about the re-break by hackers into the affected accounts in 2015 and 2016. But sadly, some of the concerned people failed to properly comprehend the situation. Though, the Yahoo Board on Wednesday didn’t conclude that there was an intentional mishandling of the information.

The hackers who were connected with the state government used the information to forge ‘cookies’ which was then used to access 32 million Yahoo accounts. As they got aware of the incident, the company took immediate actions consulting the police and notifying 26 specifically targeted high-profile users to change their passwords.

Marissa Mayer

Marissa Mayer to lose her annual bonus

Marissa Mayer, who took up as CEO in 2012, will give up her equity compensation of 2016 because of the poor results in the hack handling by the company. In a report, she stated that she did not learn about the massive attack until September 2016, when the company first revealed about the matter to the public.

Mayer’s annual target bonus is $2 million, her base salary is $1 million annually and her annual stock award is approx around $12 million a year. She is giving up her bonus and equity grants for she is the current CEO and should take up the responsibility for every ups and downs in the company. Instead, they have decided to give her bonus to their potential employees.

On her blog she stated “However, I am the CEO of the company and since this incident happened during my tenure, I have agreed to forgo my annual bonus and my annual equity grant this year and have expressed my desire that my bonus be redistributed to our company’s hardworking employees, who contributed so much to Yahoo’s success in 2016.”

There is no clear indication from the company’s side about the employees responsible for the handling failure. But Bell, a lawyer at Yahoo seems to take up the allegations. On Wednesday, Yahoo said that Bell their long-time lawyer resigned and he would receive no payments concerned with his departure. Also, company’s chief information security officer Alex Stamos left the tech-giant at the time of 2014 hack attack. He had some arguments with Marissa Mayer on the issue.

The incident affected Yahoo’s deal with the Verizon. Putting aside the incident, Yahoo is all set to move away with the sale of its internet operations to Verizon. So the companies now had reconsidered the deal negotiating $350 million from the price. The company is looking forward to closing the transaction by the end of the June.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

The chip shortage is a ‘short-term’ problems, says Elon Musk

The chip shortage is a ‘short-term’ problems, says Elon Musk

The CEO’s outlook is far more optimistic than other automotive industry leaders who believe it may last up to 2023-24.
13 hours ago
Supply chain crisis bad news for automotive industry leaders

Supply chain crisis bad news for automotive industry leaders

The world’s biggest car companies are on track to lose production of 7.7 million vehicles in 2021. The forecast advices automakers on supply chain and other issues.
3 days ago
Scammers dupe Apple fans with free bitcoin lure

Scammers dupe Apple fans with free bitcoin lure

Savvy scammers used a fake event stream, a fake Apple website, and the promise of free bitcoin to lure fans into opening up their wallets.
4 days ago
Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

Japan’s MUFG offloads Union Bank to U.S. Bancorp for $7.3 billion

The total amount of cash to be received as part of MUFG Union Bank’s sale to Bancorp is $7.3 billion (800 billion yen).
5 days ago
Evergrande: A black swan event that could spook markets

Evergrande: A black swan event that could spook markets

EverGrande is now known as the “world’s most indebted property developer” and serves as a symbol of corporate excess.
6 days ago
Moderna vaccine more effective than Pfizer, study says

Moderna vaccine more effective than Pfizer, study says

Moderna’s Covid-19 vaccine does a slightly better job of preventing coronavirus-related hospitalizations and emergency department visits.
1 week ago