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TECHNOLOGY Friday 3 March 2017

Yahoo punishes CEO in latest fallout from security breakdown

MICHAEL LIEDTKE nus and my annual equity
AP Technology Writer grant,” Mayer wrote.
SAN FRANCISCO (AP) — In its report, Yahoo’s board
Yahoo is punishing CEO said it decided to withhold
Marissa Mayer and part- a cash bonus that oth-
ing ways with its top law- erwise would have been
yer for the mishandling of paid to her. Mayer is eli-
two security breaches that gible to receive a bonus of
exposed the personal in- up to $2 million annually.
formation of more than 1 The board said it accepted
billion users and already Mayer’s offer to relinquish
have cost the company her annual stock award,
$350 million. which is typically worth mil-
Mayer won’t be paid her lions of dollars.
annual bonus nor receive a Mayer said she wants the
potentially lucrative stock board to distribute her bo-
award because a Yahoo nus to Yahoo’s entire work-
investigation concluded force of 8,500 employees.
her management team The board didn’t say if it
reacted too slowly to one would do so.
breach discovered in 2014. Losing her bonus and an-
Yahoo’s general counsel, nual stock award probably
Ronald Bell, resigned with- won’t be too painful for
out severance pay for his Mayer, who is already rich
department’s lackadaisi- after working for more than
cal response to the security In this Thursday, Feb. 19, 2015, file photo, Yahoo President and CEO Marissa Mayer delivers the a decade as a top execu-
lapses. keynote address at the first-ever Yahoo Mobile Developer Conference, in San Francisco. tive at Google and then as
Alex Stamos, Yahoo’s top Associated Press Yahoo’s CEO for the past 4
security officer at the time 1/2 years. She is also in line
of the 2014 breach, left the for a $44 million severance
company in 2015. Yahoo didn’t disclose the learned about Yahoo’s lax incident happened during package if she doesn’t go
Although Yahoo’s security 2014 breach until last Sep- security. my tenure, I have agreed to work for Verizon after
team uncovered evidence tember when it began More than 40 lawsuits also to forgo my annual bo- the sale closes.q
that a hacker backed by notifying at least 500 mil- have been filed seeking
an unnamed foreign gov- lion users that their email damages for the breaches.
ernment had pried into addresses, birth dates, an- If Yahoo’s sale to Verizon is Fat finger: Typo
user accounts in 2014, swers to security questions, completed as expected
executives “failed to act and other personal infor- later this year, a successor caused Amazon’s big
sufficiently” on that knowl- mation may have been company called Altaba
edge, according to the stolen. Three months later, Inc. will be responsible for cloud-computing outage
results of an internal inves- Yahoo revealed it had un- paying those legal claims.
tigation disclosed Wednes- covered a separate hack Yahoo’s handling and dis-
day. in 2013 affecting about 1 closure of the breaches MAE ANDERSON removed. A full restart was
At that time, Yahoo only billion accounts, including is also under investigation AP Technology Writer required, which took lon-
notified 26 people that some that were also hit in by the Securities and Ex- NEW YORK (AP) — Ama- ger than expected due
their accounts had been 2014. change Commission and zon says an incorrectly to how fast Amazon Web
breached. The breaches, the two the Federal Trade Commis- typed command during Services has grown over
The report didn’t identify biggest in internet history, sion. The Sunnyvale, Cali- a routine debugging of its the past few years.
the negligent executives, have already exacted a fornia, company says it has billing system caused the Amazon says it is making
but it chastised the com- major toll. spent $16 million investigat- five-hour outage of some changes to its system to
pany’s legal department Yahoo already lowered ing the breaches and cov- Amazon Web Services make sure incorrect com-
for not looking more deep- the sales price of its email ering the legal expenses so servers on Tuesday. mands won’t trigger an
ly into the 2014 breach. Be- and other digital services far. In a summary posted on- outage of its web services
cause of that, the incident to Verizon Communica- In a blog post on Yahoo’s line, the Seattle company in the future.
“was not properly inves- tions from $4.83 billion to Tumblr service , Mayer said says a command meant Amazon is the world’s larg-
tigated and analyzed at $4.48 billion to account she didn’t learn about the to remove a small num- est provider of cloud ser-
the time,” the report con- for the potential backlash scope of the breaches until ber of servers for one of vices, which entails host-
cluded. from the breaches. That September and then tried its S3 subsystems was en- ing companies’ comput-
Bell declined to comment deal was reached last July, to set things right. “How- tered incorrectly and a ing functions on remote
through his spokeswoman, two months before Verizon ever, I am the CEO of the larger set of servers was servers.q
Marcy Simon. and the rest of the world company and since this