Microsoft CEO Satya Nadella arrives at federal court in Washington, DC, Monday, October 2, 2023.
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Microsoft The company will evaluate its employees’ cybersecurity contributions and include them in the review, Vice Chairman and President Brad Smith said Thursday ahead of a U.S. House committee hearing on the software maker’s security practices. salary.
The changes are part of Microsoft’s efforts to address concerns about its efforts to protect customer data.
In April, the Department of Homeland Security released a report based on an independent review of China’s breach of email accounts of U.S. government officials, which Microsoft disclosed last year. Microsoft has committed to changing some practices to address the flaws identified in the report.
In his addendum on Wednesday written testimony Smith wrote in a letter to the House Homeland Security Committee that in fiscal year 2025, which begins July 1, security will become a new core priority, along with other areas, reviewed twice a year by staff and managers.
For senior executives who meet regularly with Chief Executive Satya Nadella, one-third of the “individual performance” component of their fiscal 2025 bonuses will be shared with the board’s compensation committee on their cybersecurity efforts, Smith wrote. Work review hooks. He added that third parties not named in the addendum will provide Nadella and board committees with independent assessments to assist in the review.
During this fiscal year, these executives may see cybersecurity-related impacts reflected in their compensation.
“The Board has also determined that, for the fiscal year ending June 30, the Compensation Committee will explicitly consider the cybersecurity performance of each SLT member in its annual evaluation of executive performance,” Smith wrote. “In addition to our In addition to making design changes to executive compensation plans to increase accountability for cybersecurity, the board can also exercise downward discretion over compensation outcomes as it deems appropriate.”
The hearing begins at 1:15 p.m. ET on Thursday and will live streaming on YouTube.
watch: Microsoft Vice President of Security Vasu Jakkal discusses network security with Jim Cramer
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