Microsoft employees' cybersecurity contributions will factor into their pay
What specific portion of the "individual performance" bonuses for top Microsoft executives will be tied to their cybersecurity work in the new fiscal year?
In the new fiscal year, one-third of the "individual performance" portion of bonuses for top Microsoft executives will be tied to their cybersecurity work12. This decision was made as part of Microsoft's efforts to address concerns about how much it's doing to protect its clients' data. The company's president, Brad Smith, informed a U.S. House committee about this change ahead of a hearing on Thursday.
How will the board's compensation committee assess the cybersecurity performance of senior executives in the current fiscal year?
The board's compensation committee will assess the cybersecurity performance of senior executives in the current fiscal year by explicitly considering each SLT (Senior Leadership Team) member's cybersecurity performance when making their annual assessment of the executive's performance1. This decision aims to create greater accountability for cybersecurity among top executives and ensure that the company's security practices are up to par. The committee may also exercise downward discretion on compensation outcomes as it deems appropriate, based on the cybersecurity performance of the executives.
How often will Microsoft employees discuss their cybersecurity contributions with their managers, and how will these discussions impact their total compensation?
Microsoft employees will discuss their cybersecurity contributions with their managers in twice-annual reviews. These discussions will factor into their total compensation.