Yahoo has named Arthur Chong to replace Ronald Bell, who resigned as general counsel after a report that the company's legal team failed to properly investigate a huge data breach disclosed last year.
That data breach of 500 million Yahoo accounts contributed to a $350 million discount in Verizon's offer to purchase the company's internet business. It also resulted in federal indictments against two Russian spies and mercenary hackers.
As Yahoo prepares for the transition with Verizon, Chong will have his work cut out for him.
In addition to hiring Chong, Yahoo disclosed in its latest regulatory filing that the company is moving forward with the Verizon deal. Verizon is buying the company's core business for $4.5 billion.
After Verizon takes over, Yahoo will emerge as "Altaba," an investment firm. Thomas McInerney, a Yahoo board member, will serve as chief executive officer. Alexi Wellman, Yahoo's global controller, will be chief financial officer of the new company.
Chong will serve as general counsel and secretary, and De Ann Work will become deputy general counsel.
Chong had served as outside counsel to Yahoo since October 2016, and previously as special adviser to Sheppard Mullin. He was executive vice president and general counsel for Broadcom from 2008 to 2016.
He and his new deputy counsel, Work, crossed paths at Broadcom. Work was deputy general counsel for the semiconductor manufacturer, and became a special adviser to Yahoo in 2016.
According to the Securities and Exchange Commission filing, Yahoo paid Chong $100,000 per month between Oct. 31, 2016, and March 9, 2017. He will be paid $1 million annually at his new job, according to an offer letter including with the filing.
- Yahoo's Top Lawyer Resigns and C.E.O. Marissa Mayer Loses Bonus in Wake of Hack (New York Times)
- Why Your In-House Job Is at Risk Over Cybersecurity (FindLaw's InHouse)
- Starting Off an Internal Investigation Right (FindLaw's In House)