Top Lawyer at Yahoo Resigns, CEO Loses Bonus

Ronald Bell the top lawyer at Yahoo announced his resignation on Wednesday and CEO Marissa Mayer lost her bonus for 2016 after an internal investigation by the board of the hack of its computer system in 2014 that stole information of over 500 million users.

Senior Yahoo executives, information security employees and company lawyers knew of the computer hack during 2014 and knew about other attempts to hack affected accounts during 2015 as well as 2016, but did not properly investigate or comprehend the situation, said the board of directors in its Wednesday securities filing.

The board did not come to the conclusion that any intentional suppression of information took place.

The hackers, which Yahoo says were connected to a government outside the U.S., used the information they stole to forge a software known as a cookie which was able access over 32 million accounts on Yahoo, said the company.

Mayer, who will lose her equity compensation for 2017 due to the incident, said in a prepared statement that she learned of the system breach in September of 2016, when Yahoo disclosed it for the first time to the public.

However, she added that since she is the CEO and the incident took place under her watch, she agreed to forgo her bonus and annual equity grant.

Under the employment agreement signed by Mayer, her annual bonus is $2 million and her annual award of stock is listed as being nothing less of $12 million per year. Base salary for Mayer is $1 million annually.

The filing by the company, which concluded the investigation, avoided the naming of individuals responsible for the security woes at Yahoo, and left a number of questions still unanswered.

No additional information was offered by the board related to the apparent failure at the company to notice a 2013 separate theft of account information for one billion of its users.

That particular theft, which last year was uncovered by an outside expert in security who noticed that information was being sold on the Internet’s black market, was so serious Yahoo forced all the effected users to change passwords.

Yahoo is very eager to put these incidents behind them and to move forward with its sale of the internet options to telecommunications giant Verizon Communications.

It was announced last week that the two companies renegotiated their deal due to the breaches and shaved off $350 million of the sales price.

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