Saturday, May 1, 2010
Executive Protection: Current Status Of Fortune 500 Security Expenditures
This is one of the best articles I have come across in awhile, just because it is full of some very good info on the money side of executive protection. I have never seen such a complete compilation of this stuff, and bravo to Mr. Andrejczak for putting this together. Maybe he could do a report on the overseas contracting industry one of these days?
A couple of highlights. Obviously the recession is causing many companies to pinch pennies, to include security expenditures for CEO’s and management. But like the article mentions, the report is not able to get a complete picture on expenditures. With that said, you can still get a lot out of this thing.
It looks like the top companies are Starbucks, Dell, and Oracle (for disclosed expenditures). I imagine Apple and Microsoft pay big as well, but that was not disclosed.
I also thought the listing of companies who had interests in Mexico was telling. The expenditures for security services for Coke and Citigroup has increased, which makes sense. I imagine many companies with offices and CEO’s located in Mexico, will be paying a premium for protection.
The final point that made this article really cool, was the mention of security companies who were players in the fortune 500 protection game. And most of them had blogs! lol Although I don’t think they are blogging for the same reason I am. Blogs on websites are usually part of the SEO strategy of companies, so they can be more searchable to potential clients.
Most corporate websites are stagnate, because they don’t get a lot of content coming into the site to make them highly searchable. You attach a blog to a site and that increases a companies chances of being found in Google Search. That is also why they set up Facebook and Twitter accounts, so they rate high in search. Either way, I put these companies up on my reader, and I look forward to what they have to say. I have no clue if they are hiring, but it wouldn’t hurt to send them a cover letter and resume if you are looking for work CONUS. (As a disclosure, I do not work for any of these companies, nor am I endorsing them–just getting the word out) –Matt
Insite Security website here.
Insite Security blog here.
Sexton Executive Security website here.
Sexton Security’s Bullet Proof blog here.
Inter-Con Security Systems website here.
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CEO security-tabs fall at Google, FedEx and Disney
Starbucks pays more to protect CEO Howard Schultz
By Matt Andrejczak
April 12, 2010
Executives at Kodak and Deere are now paying for their own home-security systems, a sign that executive-security is one perk corporate board’s are scrutinizing more closely.
Indeed, other companies cut back on security expenses, too — especially those known to spend big bucks on protecting their CEO, according to a MarketWatch review of proxy statements filed so far this year by Dow 30 components and larger S&P 500 companies.
The security tab for Google CEO Eric Schmidt fell 42% to $233,542 last year. The bill for FedEx CEO Fred Smith dropped 23% to $461,405, while the cost for Disney CEO Bob Iger dipped 9% to $589,102.
Since 2007, Google has paid $1.1 million in personal security expenses for Schmidt, FedEx has paid $1.5 million for Smith, and Disney has paid $1.9 million for Iger.
Compensation consultant Todd Gershkowitz of Farient Advisors said CEO security is not an egregious perk compared to goodies like country-club memberships, chauffeurs or taxes companies pay on super-sized severance packages for axed CEOs.
But company-provided security “becomes an invasion of privacy, some CEOs don’t want it, some accept it,” said Gershkowitz, who considers CEO security expenditures more of an issue about risk than one of executive perks handed out by directors.
He said he’d like to see more detailed disclosures about CEO security in proxies.
Deere and Kodak won’t pay the bill for residential security anymore, according to their yearly proxy statements filed with the Securities and Exchange Commission.
Starting this year, Deere said eight executives will have to reimburse the company for security services that had included “drive-by surveillance and response to security alarms” for certain executives by Deere’s corporate security staff.
CEO pay: Who made the big buck in 2009?
Median CEO pay declined for a second year in 2009, according to the Wall Street Journal’s annual CEO pay survey. WSJ’s Erin White talks with David Wise of Hay Group about the survey.
This perk cost Deere less than $19,000 last year, but the exact number is unknown since the tractor maker lumped the cost in with spouses attending company events.
Friday, April 30, 2010
Afghanistan: Taliban Shadow Government Benefits From Reckless Afghan Private Security
Local power brokers in Kandahar have worked to maintain this revenue stream by keeping the police force weak, forcing coalition forces to rely on private security companies for protection, the Institute of the Study of War report said.
That is precisely the type of behavior by local officials that has alienated residents and provided an opening for the Taliban to establish effective control over much of the province.
Abrahams said he has tried to tell locals that he understands their plight, but he is consistently undermined by the wild shooting.
“Actions speak louder than words, and the locals see these drugged-out thugs with guns and trucks with ‘The United States’ painted on the side,” said Abrahams.
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That is how I would have wrote this title for the story below. It’s kind of funny how the Afghan government was soooo adamant about pulling all the security companies under their control, complete with only issuing licenses to Afghan companies, yet at the same time, these private security companies they control are doing a lot of harm to their government and to the war effort.
It is also doing a lot of harm to the US and Coalition strategy for the war, all because the Afghans don’t have control over something they said they wanted to control. I guess making money off of the licenses and taxes is all they really cared about? Meanwhile, we have Afghan companies running through communities and using poor fire discipline, thus causing civilian casualties.
The final point I want to make, is the ‘shadow government’ that the Taliban are running in places like Kandahar, are totally benefiting from reckless Afghan security companies. If the government pays the cops crap wages, they moonlight as security contractors. Then they go out with the companies, and when their convoys receive a little fire from a Taliban shooter, and the convoys fire up entire communities with everything they got, that cop is now attached to that incident. Or that convoy forces people off of roads or robs other people or contractors on the roads, and now the Shadow Government has succeeded in making the police and government look weak because they can’t control the companies. And because the goods on the trucks of the convoys all say ‘Made In The USA’, well then that ties in the actions of these companies to the coalition.
My advice to General McChrystal and company is to get a handle on this quick. Because the enemy will only continue to exploit this angle.(they have actually been doing this for awhile) They will also conduct pseudo operations, and pretend to be Afghan police or army, and further attack the people, all with the idea of pinning it on the real government. This tactic is nothing new, but now that there is such a huge demand for logistics in country to support the surge of troops and contractors, it would be kind of important to take care of this now.
One solution is to make it mandatory that Afghan companies are bonded. Hell, nothing motivates a boss more to do things right, than the possibility of losing a lot of money because of poor performance or because of breaking the law/contract. And to ensure they are doing things right, I think there should be a monitor attached to these convoys. Be it expats or soldiers, it doesn’t matter. Just some kind of adult supervision to say ‘yes, these guys are doing it right’ or ‘no, they violated the contract/law and they lose the bond’. That would be a quick down and dirty way of making sure these guys are not negatively impacting the war strategy, and ensuring they are doing a good job. –Matt
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Reckless private security companies anger Afghans
By SEBASTIAN ABBOT
April 30, 2010
HUTAL, Afghanistan — Private Afghan security guards protecting NATO supply convoys in southern Kandahar province regularly fire wildly into villages they pass, hindering coalition efforts to build local support ahead of this summer’s planned offensive in the area, U.S. and Afghan officials say.
The guards shoot into the villages to intimidate any potential militants, the officials say, but also cause the kind of civilian casualties that the top U.S. commander in Afghanistan has tried repeatedly to stop.
“Especially as they go through the populated areas, they tend to squeeze the trigger first and ask questions later,” said Capt. Matt Quiggle, a member of the U.S. Army’s 5th Stryker brigade tasked with patrolling Highway One, which connects Afghanistan’s major cities.
The troops say they have complained to senior coalition officials and have even detained some guards to lecture them about their conduct, but the problem has continued.
Maritime Security: Piracy Rattles Japan To Open First Foreign Military Base In Djibouti
Interesting move, but as the last sentence in the article specifies, the pirates are completely going off the hunting reservation. Now if the Japanese built a prison on their base to keep all of these pirates, now that would be something. Then we can end this catch and release program once and for all. I kind of doubt they would do that, but you never know? –Matt
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Piracy rattles Japan to open first foreign military base
By Emmanuel Goujon
April 24, 2010
DJIBOUTI — Japan is opening its first overseas army base in Djibouti, a small African state strategically located at the southern end of the Red Sea on the Gulf of Aden, to counter rising piracy in the region.
The 40-million-dollar base expected to be completed by early next year will strengthen international efforts to curb hijackings and vessel attacks by hordes of gunmen from the lawless Somalia.
The Djibouti base breaks new ground for Japan, which has had no standing army since World War II and cannot wage war. It however has armed forces — the Japan Self-Defence Forces — which were formed at the end of US occupation in 1952.
Military News: Military Pay Competitive With Private Sector
I tend to agree that the total compensation package that the military offers these days, is pretty damn good. I have yet to work for a company that has offered the same benefits that the military has to offer. If anything, the only reason why salary is more for contractors, is because of this fact. Not to mention that many companies that use independent contractors do not offer retirement plans or medical plans. Nope, when you cut away from the military umbilical cord, you are on your own. That is why I tell guys to save your pennies, because you never know how long your contract will last or even how long your company will be around.
And to add further to this article, I know of some contractors that have gone back to the military. One of the reasons for that is stability for their family, or to get certifications that are tough to get anywhere else (like clearances). Some guys join up in Guard units so they can serve and be a contractor at the same time. That is an optimum set up, but you don’t have much of a personal life with that one.
Finally, there are the tax incentives of military versus contractor. If a contractor does not get their 330 days overseas, or is not able to claim residency in a foreign country, they will be taking a huge hit in taxes. Some guys are able to get their 330 days, but many are not able to enjoy the foreign earned income tax credit. The reason for that is a family emergency or the company just doesn’t have enough work for you to stay overseas for that long. Or your contract could end. There is a number of things that could happen to you last minute, that could screw up your plans for taxes, and it pays to be prepared. –Matt
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Military pay competitive with private sector
April 30, 2010WASHINGTON: Military compensation is competing well against the private sector, as evidenced by the high rate of recruitment and retention, a Defense Department official told a Senate subcommittee today.
Therefore, the department is focusing on targeted special pays and bonuses as an efficient means to give incentives for people to sign up for hard-to-fill and hard-to-retain specialties, William J. Carr, deputy undersecretary of defense for personnel policy, told the Senate Armed Services Committee’s personnel subcommittee.
Using regular military compensation – basic pay combined with housing and food allowances and federal tax advantages – as a comparison, military members are paid higher than 70 percent of their private-sector peers of similar education and experience, Carr said.