In yet another example of the impact of cyberattacks on businesses –
and their executives – across the US, Yahoo recently announced the
cancellation of CEO Marissa Mayer’s annual bonus and the resignation
of the company’s general counsel, both direct results of Yahoo’s
failures in handling the cyberattacks that compromised the email accounts
of up to a billion users between 2013 and 2016.
Given the widely accepted opinion that Yahoo was far too slow in assessing,
addressing and notifying customers and others of the occurrence of the
breach and its effects, Mayer wrote on a blog post that “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
The consequences were even more dire for Ron Bell, Yahoo general counsel,
who will no longer be with the company.
These announcements are far from shocking given the recent announcement
by Verizon that as a result of the Yahoo breaches it would be paying $350
million less than previously agreed for its acquisition of Yahoo Internet
The Yahoo situation is another reminder of the need for company management
and legal counsel to be vigilant, prepare for, and act swiftly in the
face of the constantly growing cyber risk facing businesses large and
small. No business is immune from the risk, and boards and executives
should reach out to outside counsel to establish a proper cybersecurity
program tailored to their company’s individual needs and risk level.
For more information on the topic discussed, contact
David Lallouz at
firstname.lastname@example.org or any member of Tannenbaum Helpern’s
Cybersecurity and Data Privacy team.
Tannenbaum Helpern’s Cybersecurity and Data Privacy practice is a
cross-disciplinary team of attorneys who help companies navigate the constantly-evolving
legal and regulatory landscape in the data privacy and security field.
The practice works with clients to achieve timely, cost-efficient solutions
that balance each company’s needs.
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