Recent terrorist attacks in two European capitals and an office shooting in San Bernardino, California, have prompted some boards to re-examine security. While the risk for a little known top executive may be low, a person’s public prominence can quickly change, much thanks to social media, Falkenberg said.
Oracle’s cost in fiscal 2015 was for security at Ellison’s residence. Home protection systems can include camera surveillance, pressure pads located near doors or walkways to detect movement, and dense vegetation or crushed gravel that’s noisy to walk on beneath windows to deter intruders, Afimac’s Martin said.
“It is important to keep the boss safe, but there comes a point -- certainly south of the $1 million mark -- where shareholders deserve a far clearer explanation of the risks and provisions and the justification,” said Michael Pryce-Jones, director of corporate governance at CtW Investment Group, which advocates for pension funds that collectively manage $250 billion.
Still, rigorous programs that come with steep costs can be warranted for some, said Paul Viollis, CEO of security provider Viollis Group International.
“It all comes down to having fiduciary responsibility,” Viollis said. “Not providing protection would be like going to the Super Bowl with nobody to block for the quarterback.”