Should Compensation Be Tied To Security Performance?

Lately, I’ve been thinking about how to incentivize security performance across an organization that struggles with the discipline for good security. When done correctly, security can actually help accelerate development lifecycles and is strongly tied to increased organization performance. However, for organizations that struggle, I wonder if they can reward good security behavior with some type of compensation?

CISO compensation is already tied to the security performance of the organization. The success of the security organization to deliver on security goals are already tied to annual KPIs or other performance metrics that tie back to how the CISO is reviewed and ultimately compensated. However, these goals become more risky and less achievable when the CISO is held accountable for security goals across the entire org. The reason for this is the CISO typically doesn’t own the products, systems, applications, etc. that run the underlying business. Instead, the CISO needs to manage the risk for these things and it may often be the case that the CISO or the business will need to make tradeoffs that could be sub-optimal. This could result in the CISO failing to achieve security goals across the org if the rest of the org isn’t held equally accountable.

In an ideal scenario, the rest of the C-Suite will also carry some sort of annual security goal(s) as part of their KPIs. This will effectively tie the performance and compensation of these leaders (CEO, CTO, CFO, CIO, etc.) to how well they deliver on the security goals that are set in agreement with the CISO. If the organization uses cascading goals or KPIs this means the entire org will have some part of their performance compensation tied to how well they execute their security objectives. I can guarantee an engineering team will never skip a security patch again if they are told they won’t get their annual bonus because they missed their annual security goal by shipping a product with a critical security vulnerability.

I also think organizations can gamify and incentivize compensation for security performance even further than just annual performance and compensation. Establishing an internal bug bounty program that rewards employees who find legitimate security issues or rewards teams who never deploy with a critical vulnerability can really accelerate a security program. The challenge for this is it costs money and needs to be balanced with normal business operations. However, I argue paying the people in your org to accelerate security performance will ultimately cost less than the cost of a security breach.

I personally would like to see an organization take security serious enough where they hold the other C-Suite executives accountable for security by tying their compensation to the security performance of their orgs. By bringing this issue to the forefront people will immediately see the real effects of security performance in their paychecks and they won’t be able to ignore the conversation any longer.

Here are the things I think should be part of an organization wide security performance program:

  • Meeting established security Service Level Objectives (SLOs) for patching
  • Meeting incident recovery or remediation SLOs
  • Deploying any type of infrastructure (OS, network, storage, etc.) without critical or high vulnerabilities
  • Deploying or shipping products and applications without critical or high vulnerabilities
  • Meeting SLOs for resolution of critical security findings from security researchers or external bug bounty programs
  • Resolving security risks discovered and documented during mergers and acquisitions within a set time frame (e.g. 1 year or less)
  • Requiring other C-Suite executives to carry a security performance goal for their organization that is tied to their compensation (same with their org)
  • Establishing and compensating employees via an internal bug bounty / security issue disclosure program
  • Closing security exceptions on time or before the due date
  • Achieving all security audit requirements (e.g. FedRAMP, SOC, ISO, etc.)
  • Having the entire organization go a set time frame without a phishing incident or BEC

This isn’t an exhaustive list, but I think you get the idea. Organizations should start structuring performance and compensation goals to help the security org and ultimately hold the rest of the business accountable for the security performance of the things they own. This can help remove the adversarial relationship that often develops between security and other groups and push security into the forefront of the decision making process for the rest of the business.