One price that hasn’t risen due to inflation is the cost of keeping Warren Buffett safe and sound.
Personal and home security bills that Berkshire Hathaway covered on behalf of Chairman and CEO Buffett fell 19% from a 2016 high of $387,881 to $313,595 in 2023, according to the data. public disclosures of company information last week. According to June Frank, managing director and global head of compensation, personal security for executives typically includes home security systems and their installation in primary and secondary homes, security for the CEO and his family, vehicle and driver security, and even insurance and cybersecurity protection. and management consulting at ISS-Corporate. Consulting firm overview of CEO benefits from 2020 to 2023 found that the prevalence of home security benefits for CEOs of S&P 500 companies increased from 12.6% in 2020 to 15.7% in 2023. It was one of only two benefits whose inclusion in executive compensation plans did not decline between 2020 and 2023. Another benefit that hasn’t decreased in prevalence is corporate jet travel.) The average cost of security benefits increased from $34,300 in 2020 to $40,700 in 2023.
In Buffett’s case, the value of his insurance benefits fluctuated over the years from 2016 to 2023, averaging about $312,000.
According to Frank, price changes are typically the result of more or less international travel, vacations, and alarm installation and maintenance. Overall, one of the main factors behind the rise in the cost of personal security benefits is inflation, Frank said. Frank would not comment specifically on Buffett’s benefits.
“The cost of everything is going up, and part of that is due to inflation—the cost of services and goods is going up,” Frank said. Another part is that the threat landscape for CEOs has changed as some have taken on more visible roles, taken political positions or generated negative public sentiment, he said. “It’s worth noting that the council typically reviews this issue annually,” he said. Over the next few years, real or perceived threats may increase or decrease.
Last year, Meta Platforms said its board increased founder and CEO Mark Zuckerberg’s security premium from $10 million to $14 million, one of the highest among large-cap companies. The security assessment identified specific threats to Zuckerberg related to the high-profile nature of his role as CEO, chairman and controlling shareholder. “We believe Mr. Zuckerberg’s role places him in a unique position: he is synonymous with Meta, and as a result, negative sentiment toward our company is directly related to and often transferred to Mr. Zuckerberg,” the company said last time . year in their disclosures. Alphabet CEO Sundar Pichai was highest paid CEO last year at 226 million dollars; his personal security benefits totaled $5,935,084.
Pfizer paid $789,495. in security benefits for CEO Albert Bourla due to “increased security risks, including threats”, which led to additional protection measures.
According to the ISS-Corporate survey, S&P 500 financial services companies have seen the greatest growth in the adoption of executive home security benefits in recent years, followed by technology companies.
Wells Fargo covered CEO Charles Scharf’s $81,264 in 2023 expenses to pay for the implementation of residential physical and cybersecurity improvements and ongoing maintenance. Of this amount, $66,465 was intended to cover installation costs. the company said last week. American Express spent $138,532 on CEO Steven Skveri. home security and security during personal trips.