BP #6 Yahoo’s Top Lawyer Resigns and C.E.O. Marissa Mayer Loses Bonus in Wake of Hack

In 2014, Yahoo experienced a breach in security that had the potential to impact 32 million Yahoo accounts. Senior executives and other revenant personal were said to be aware of the situation but staff  failed to adequately investigate the situation. Current CEO, Marissa Mayer, has agreed to forgo her annual bonus as well as the equity grant for the year despite saying she was unaware of the breach. The total bonus she is losing was estimated at $13 million. In addition to Mayer losing her bonus, Yahoo’s top lawyer, Ronald Bell, resigned. Bell took the blame for the breach, but was not the chief information security office in the 2014 breach, Alex Stamos was. Stamos left the company in 2015. Yahoo has since had to revise its procedures for online security.

From the outside, it appears that Yahoo is taking all the necessary actions move forward from the security issues it faced. However, there seems to be a sense of inconsistency. First,  it was released that the  staff were aware of the breach at the time but failed in investigate is concerning. Also, the security officer who is taking the blame was not in charge at the time. But the officer who was in charge, left shortly after the time. It is also unclear if Yahoo has released a statement apologizing to its users.

It is impossible to say what the company or the company’s employees moral beliefs are and if they are acting consistent with there beliefs but it seems to me that something is off with the situation. In my mind, when someone says they didn’t know about the incident but then agrees to forgo $13 million, as Mayer is, that seems unauthentic and inconsistent which according to McFall, Mayer would lack integrity.

However, this incident could have been one employee lacking integrity rather than the whole company. There would need to be more information to determine which was the case.


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