It costs a lot to keep Mark Zuckerberg safe.
Facebook Inc. spent $7.33 million last year protecting its chief executive officer at his homes and during his tour across the U.S. Last week, the social-media giant said it would provide an additional $10 million a year for him to spend on personal security.
The cost for this year far exceeds what other firms will spend for their bosses and probably surpass the average annual compensation for S&P 500 CEOs. For the world’s sixth-richest person, it doesn’t necessarily amount to much.
“Security at multiple residences, transportation, a protection team, cyber, travel -- if you also have a wife and a few kids, you’re already over $10 million just for a basic package,” said Roderick Jones, chairman of risk consultant Concentric Advisors.
Not all corporate titans need security. An executive who avoids the limelight, shuns media interviews and donates to charity anonymously can more easily blend in with the public.
Zuckerberg is, well, Zuckerberg. He’s the founder and leader of one of the world’s most valuable companies, regularly sharing photos and videos of himself playing with his two daughters, meeting world leaders and barbecuing brisket in his backyard. And he’s worth $68.6 billion.
Facebook also took a barrage of criticism over its data-privacy policies, especially in countries such as Myanmar and Sri Lanka, where misinformation on the firm’s website led to violence. It faced significant backlash from investigations into Russia’s efforts to influence the outcome of the 2016 U.S. elections. Those controversies -- not to mention angry customers, terrorist attacks and workplace shootings -- can make tight security essential.
The costs for Facebook’s CEO security program is appropriate and necessary, considering Zuckerberg’s “position and importance” to the firm, and he doesn’t receive any other compensation beyond a $1 salary, the Menlo Park, California-based company said in its most recent quarterly report.
Regulatory filings provide occasional glimpses into company-paid arrangements. Perks that are available to all employees -- such as free snacks or security guards at building entrances -- don’t have to be reported. But benefits solely for an executive, such as bodyguards or home-security systems, are taxable and typically must be included as part of the person’s annual compensation.
Most big companies pay for CEOs to use private jets for personal trips, both to ensure their security and give them flexibility to return on short notice. Some provide cars and drivers and pay for home security. Only a few cover bodyguards.