Recent events have brought attention to the significant security concerns faced by corporate leaders and the substantial expenses incurred by their companies to protect them. Meta (META) is a prime example, spending a whopping $24.4 million annually on personal security and travel for CEO Mark Zuckerberg and other top executives. This level of expenditure is deemed necessary given the current threat landscape, as stated in the company’s latest proxy statement. Similarly, Tesla (TSLA) allocates millions towards security for CEO Elon Musk, who has become increasingly wary of potential threats to his safety. Last year, the electric vehicle manufacturer invested $2.4 million in hiring a security firm to safeguard its billionaire leader.
The recent tragic murder of UnitedHealthcare CEO Brian Thompson has highlighted the security risks faced by corporate leaders. UnitedHealth, in its 2023 proxy statement, did not disclose specific details about executive security measures but mentioned that CEO Andrew Witty is required to use corporate aircraft for business travel due to security concerns.
According to data from Equilar, a research firm specializing in executive compensation, security costs for S&P 500 companies have seen a significant increase in recent years. The median value of security expenses for named executive officers doubled from $47,643 in 2021 to $98,069 in 2023, with the percentage of companies providing such perks rising from 23.5% to 27.5%.
Let’s take a closer look at the security expenditure of some of the world’s largest tech companies for their top executives:
Meta
- Market cap: $1.6 trillion
- Executive security spend: $24.4 million
Meta leads the pack in executive security spending within the S&P 500, with a significant portion of the $24.4 million allocated in 2023 going towards CEO Mark Zuckerberg. Zuckerberg received $9.4 million for personal security at his residences and during travel, along with a pre-tax allowance of $14 million to cover additional security expenses for himself and his family. The company also invested in security for other executives, including $903,139 for COO Javier Olivan.
- Market cap: $2.2 trillion
- Executive security spend: $6.8 million
In 2023, Google (GOOGL) and its parent company Alphabet (GOOGL) allocated nearly $6.8 million for personal security services for CEO Sundar Pichai, making them the second highest spender in the S&P 500 for security perks that year.
Amazon
- Market cap: $2.4 trillion
- Executive security spend: $2.7 million
Amazon (AMZN) invested close to $2.7 million in 2023 on security arrangements for executives such as Jeff Bezos, Andy Jassy, Douglas Herrington, and Adam Selipsky. The bulk of the security costs went towards Bezos, the founder and executive chair, with CEO Jassy also receiving a significant allocation. The company also provided security for other top executives within the organization.
Nvidia
- Market cap: $3.5 trillion
- Executive security spend: $2.5 million
In fiscal year 2024, Nvidia (NVDA) allocated nearly $2.5 million for CEO Jensen Huang’s security, covering residential security, consultation fees, monitoring services, and transportation.
Apple
- Market cap: $3.6 trillion
- Executive security spend: $2.4 million
Apple (AAPL) spent approximately $820,000 on personal security services for CEO Tim Cook in the previous year. Additionally, the company invested over $1.6 million in air travel expenses for Cook, reflecting the high visibility of his role and the global profile of the company.
Tesla
- Market cap: $1.2 trillion
- Executive security spend: $2.4 million
In December 2023, Tesla engaged a security company owned by CEO Elon Musk to provide services for Musk himself, with expenses totaling $2.4 million for the year. Musk has expressed concerns about his safety, revealing that there were attempted attacks on his life before the perpetrators were apprehended.
Microsoft
- Market cap: $3.3 trillion
- Executive security spend: $58,000
Microsoft (MSFT) allocated $58,291 towards security and personal travel expenses for CEO Satya Nadella in the fiscal year 2024. The company emphasized that providing security services for top executives is essential in enabling them to focus on their responsibilities while minimizing security threats.
Rewrite the sentence: “The cat chased the mouse through the house.”
Rewritten sentence: “Through the house, the mouse was chased by the cat.”
