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.