How Much ‘Magnificent 7’ Companies Spend on Protecting Their CEOs
The shocking killing of UnitedHealthcare CEO Brian Thompson this week has shined a light on the security concerns facing corporate leaders and the myriad expenses their companies pay to protect them. Meta, for example, shells out a staggering $24.4 million every year on personal security and travel for its CEO Mark Zuckerberg and other top executives. Such costs are appropriate and necessary “in light of the threat landscape,” said the company in its most recent proxy statement. Tesla (TSLA), too, spends millions on security for its CEO Elon Musk, who in recent years has become increasingly concerned about attacks on his wellbeing. The EV maker spent $2.4 million last year to hire a security company for its billionaire leader.
Thompson, who was murdered earlier this week in New York City, headed an insurance subsidiary of UnitedHealth. The parent company didn’t break out any details regarding executive security perks in its 2023 proxy statement, although it noted that UnitedHealth CEO Andrew Witty is required to use corporate aircraft during business travel for security reasons.
Security costs across S&P 500 companies have risen substantially in recent years, according to data from Equilar, an executive data compensation research firm. The median value of security expense perks doubled from $47,643 in 2021 to $98,069 by 2023, with the share of companies providing such arrangements for named executive officers increasing by 23.5 percent to 27.5 percent.
Here’s a look at what some of the world’s largest tech companies spend on security expenses for their top executives:
Meta
- Market cap: $1.6 trillion
- Executive security spend: $24.4 million
Meta, the highest S&P 500 spender on executive security perquisites, spent most of its security-related $24.4 million expenses in 2023 on CEO Mark Zuckerberg. He received $9.4 million in costs related to personal security at his residences and during personal travel, in addition to a pre-tax allowance of $14 million to cover additional personal security costs for Zuckerberg and his family. Meta also paid for security for a handful of other of other executives, including $903,139 for chief operating officer Javier Olivan.
- Market cap: $2.2 trillion
- Executive security spend: $6.8 million
In 2023, Google (GOOGL)’s parent company Alphabet (GOOGL) spent almost $6.8 million on personal security services for Sundar Pichai, CEO of Google and Alphabet. This makes the tech company the second biggest S&P 500 spender for the year on security perk expenditures, according to Equilar.
Amazon
- Market cap: $2.4 trillion
- Executive security spend: $2.7 million
Amazon (AMZN) spent a grand total of nearly $2.7 million in 2023 on security arrangements for executives including Jeff Bezos, Andy Jassy, Douglas Herrington and Adam Selipsky. Security costs totaled at $1.6 million for Bezos, the company’s founder and executive chair, and $986,164 for CEO Jassy. The company also spent $22,631 on security for Herrington, CEO of Worldwide Amazon Stores, and $51,636 on Selipsky, CEO of Amazon Web Services (AWS).
Nvidia
- Market cap: $3.5 trillion
- Executive security spend: $2.5 million
Nvidia (NVDA) shelled out nearly $2.5 million in fiscal 2024 for its CEO Jensen Huang. These costs included $2.2 million residential security and consultation fees for Huang, in addition to security monitoring services and car and driver services.
Apple
- Market cap: $3.6 trillion
- Executive security spend: $2.4 million
Apple (AAPL) spent around $820,000 last year on personal security services for its CEO Tim Cook. The company also spent more than $1.6 million on air travel expenses for Cook, a fee that included hourly flight charges, fuel charges, departure fees and landing fees. Due to Apple’s “global profile” and “the highly visible nature of Mr. Cook’s role as CEO,” Cook is required to use private aircrafts for all business and personal travel.
Tesla
- Market cap: $1.2 trillion
- Executive security spend: $2.4 million
In December 2023, Tesla paid a security company owned by its CEO Elon Musk to provide services to Musk himself. These expenses totaled $2.4 million in 2023 and around $500,000 through February of this year, according to Tesla’s filings. Musk in July said in a post on his social platform X that two separate people had tried to kill him in the past eight months before they were arrested.
Microsoft
- Market cap: $3.3 trillion
- Executive security spend: $58,000
In fiscal year 2024, Microsoft (MSFT) put $58,291 towards security-related costs and personal travel expenses for its CEO Satya Nadella. Providing such security services enables top executives “to focus on their duties to Microsoft while reducing security threats, and therefore, mitigate risks to our business,” said the company in a recent filing.