Microsoft employees’ cybersecurity contributions will factor into their pay
Satya Nadella, CEO of Microsoft, arrives at federal court in Washington, D.C., on Monday, Oct. 2, 2023.
Nathan Howard | Bloomberg | Getty Images
Microsoft will evaluate its employees’ cybersecurity contributions in reviews that will factor into their compensation, Brad Smith, the company’s vice chair and president, said ahead of a Thursday U.S. House committee hearing on the software maker’s security practices.
The changes represent part of Microsoft’s efforts to address concerns about how much it’s doing to protect its clients’ data.
In April, the Department of Homeland Security issued a report based on an independent review of China’s breach of U.S. government officials’ email accounts, an incident that Microsoft disclosed last year. Microsoft committed to changing some practices in response to shortcomings identified in the report.
In a Wednesday addendum to his written testimony to the House Committee on Homeland Security, Smith wrote that security will be a new core priority, alongside other areas, for its employees’ twice-annual reviews with managers in the 2025 fiscal year, which begins on July 1.
For senior executives who regularly meet with CEO Satya Nadella, one-third of the “individual performance” part of their bonuses in the 2025 fiscal year will be tied to a review of their cybersecurity work from the board’s compensation committee, Smith wrote. He added that a third party not identified in the addendum will provide Nadella and the board committee with an independent assessment to assist with the review.
For the current fiscal year, these high-ranking executives might see cybersecurity-related impacts reflected in their pay.
“The Board also decided that for the current fiscal year, which ends on June 30, the Compensation Committee will consider explicitly each SLT member’s cybersecurity performance when it makes its annual assessment of the executive’s performance,” Smith wrote. “Beyond the design changes to our executive pay program to include a greater accountability for cybersecurity, the Board also has the ability to exercise downward discretion on compensation outcomes as it deems appropriate.”
Last month, Charlie Bell, Microsoft’s executive vice president for security, announced that pay for senior executives would partly become dependent on the company’s progress in achieving cybersecurity goals, without providing further detail.
The hearing starts at 1:15 p.m. ET on Thursday and will be livestreamed on YouTube.
WATCH: Microsoft Security VP Vasu Jakkal talks cybersecurity with Jim Cramer
Chesnot | Getty Images
Dogecoin shot higher on Tuesday night, extending its postelection surge after President-elect Donald Trump formally announced the creation of the Department of Government Efficiency, which he referred to as “DOGE” in his statement.
Tesla CEO Elon Musk and Vivek Ramaswamy, former Republican presidential candidate and Strive Asset Management co-founder, will lead the department, Trump said in a statement. Together, they “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
Dogecoin was last up nearly 20%. It has been one of the biggest winners in the postelection rally, gaining 153% since election day compared to bitcoin’s 30% rise in the same period. It also shot past XRP this week to become the sixth largest cryptocurrency by market cap.
Dogecoin jumped after President-elect Donald Trump announced the creation of the Department of Government Efficiency, or “DOGE.”
Memecoins are seen as a gauge of retail interest and risk appetite in crypto. When memecoin activity ramps up, it usually indicates that retail investors are participating and have an appetite to speculate further out on the risk curve.
Trump initially floated the idea of an efficiency commission in September. Since then, Musk — who has called himself the “Dogefather” in the past and has been known to make public comments about the memecoin that influence its price — has posted on his social media platform X, referring to the commission as the “Department of Government Efficiency” or “D.O.G.E.”
Dogecoin gained relevance in 2021 following Musk’s endorsement and continuous hype on social media, which has since become a big catalyst for the coin. In May that year, Musk’s posts fueled dogecoin’s rally to its all-time high of 67 cents, per Coin Metrics. Though his appearance at the time on SNL, in which he called dogecoin “a hustle,” sent its price crashing down.
The rest of the crypto market was on pause from its postelection rally. Bitcoin was trading flat at about $87,000, after briefly touching $90,000 in late afternoon trading. Crypto stocks Coinbase and MicroStrategy were lower by 1% and 2%, respectively, in extended trading.
Elon Musk embraces Donald Trump during a campaign rally in Butler, Pennsylvania on Oct. 5, 2024.
Anna Moneymaker | Getty Images
President-elect Donald Trump said Tuesday that Elon Musk and former Republican presidential hopeful Vivek Ramaswamy will lead an efficiency group when his second term begins in January.
Trump wrote in a post that the Department of Government Efficiency, or DOGE, will “become, potentially, ‘The Manhattan Project’ of our time.” He also said the group would, “pave the way” for his next administration to “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”
Trump didn’t specify where cuts will take place or when the department may be formed. Congress hasn’t created or funded such an office. He said the group’s “work will conclude no later than July 4, 2026.”
Musk’s involvement in the envisioned group was previously promised by Trump and touted by the Tesla CEO, who spent an estimated $200 million backing the Republican nominee’s 2024 campaign, as a reason to put the former president back in the White House. Musk, who also runs defense contractor SpaceX, has reportedly been stationed at Trump’s Mar-a-Lago resort in Florida since Election Night.
Ramaswamy, who challenged Trump in the Republican primary, is co-founder of investment firm Strive Asset Management. He has opposed the widespread adoption of environmental, social and governance, or ESG, principles by companies.
Trump announced a number of other appointments Tuesday, including naming Fox News host Pete Hegseth as his pick for defense secretary and John Ratcliffe as CIA director.
The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange on Dec. 4, 2023.
Brendan Mcdermid | Reuters
Spotify shares rose in extended trading Tuesday after the Swedish music streaming company issued a profit forecast for the fourth quarter that topped estimates.
Here’s how the company did, compared with what analysts expected:
- Earnings per share: 1.45 euros vs. 1.72 euros expected by LSEG
- Revenue: 3.99 billion euros vs. 4.02 billion euros expected by LSEG
- Monthly active users (MAUs): 640 million vs. 639 million expected by StreetAccount
While the company’s earnings and revenue for the third quarter trailed estimates, investors focused instead on guidance for the current period.
Spotify said operating income in the fourth quarter will come in at 481 million euros, exceeding the average analyst estimate of 432.7 million euros, according to StreetAccount. MAUs will increase to 665 million, while analysts were expecting 659.3 million, based on a StreetAccount estimate.
Still, revenue guidance trailed estimates. The company said sales will reach 4.1 billion euros, below the average analyst estimate of 4.26 billion euros, according to LSEG.
Subscribers to Spotify Premium, the company’s ad-free membership service that allows users to select songs on an unlimited basis, increased 12% year over year to 252 million, slightly ahead of estimates.
Spotify shares rose about 8% after the report to $452.35 after rising 2.2% in regular trading. The stock has more than doubled in value this year.
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