In today’s corporate world, the safety and security of top executives are of paramount importance. Recent events have shed light on the significant security concerns faced by corporate leaders and the substantial expenses incurred by their companies to protect them. One such example is Meta (META), which spends a staggering $24.4 million annually on personal security and travel for CEO Mark Zuckerberg and other top executives.
The need for such high levels of security expenditure is justified by the current threat landscape, as outlined in the company’s latest proxy statement. Similarly, Tesla (TSLA) also allocates millions towards security for CEO Elon Musk, who has become increasingly vigilant about 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 further highlighted the security risks faced by corporate leaders. While UnitedHealth did not disclose specific details about executive security measures in its 2023 proxy statement, it mentioned that CEO Andrew Witty is required to use corporate aircraft for business travel due to security concerns.
According to data from Equilar, 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%.
Taking 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. The company also invested in security for other executives, including COO Javier Olivan.
Google:
Market cap: $2.2 trillion
Executive security spend: $6.8 million
Google and its parent company Alphabet allocated nearly $6.8 million for personal security services for CEO Sundar Pichai in 2023, 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 invested close to $2.7 million in security arrangements for executives such as Jeff Bezos and Andy Jassy in 2023. The bulk of the security costs went towards Bezos, with CEO Jassy also receiving a significant allocation.
Nvidia:
Market cap: $3.5 trillion
Executive security spend: $2.5 million
In fiscal year 2024, Nvidia allocated nearly $2.5 million for CEO Jensen Huang’s security, covering various services such as residential security, consultation fees, monitoring services, and transportation.
Apple:
Market cap: $3.6 trillion
Executive security spend: $2.4 million
Apple spent approximately $820,000 on personal security services for CEO Tim Cook in the previous year. The company also 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, 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 allocated $58,291 towards security and personal travel expenses for CEO Satya Nadella in the fiscal year 2024. The company emphasized the importance of providing security services for top executives to enable them to focus on their responsibilities while minimizing security threats.
