CEOs are certainly the backbone of any company; especially for an IT company, where CEOs also represent the financial health of these companies. Hence, it comes as no surprise that some of the top-notch IT companies spend huge amounts for the safety of their CEOs. A recent report by Patently Apple mentions that Apple.inc (NASDAQ: APPL) spends nearly $700,000 a year for their CEO, Tim Cook’s security. That’s an enormous amount for sure!
Tim Cook’s security costs Apple $700,000 a year!
Why spend so much on the security of a CEO?
The A-lister IT companies provide security to their CEOs for two reasons; for their personal safety and for the company’s financial health and its shareholders. Many CEOs of these successful companies are prone to many threats to their personal safety. These threats not only pose a danger to the executives; but any adverse event can devastate the company’s financial position. May be that’s why, the most prominent companies across the globe pay a handsome amount for the safety of their leaders.
Apple is one the most successful tech companies on the planet. The company spends around $700,000 to keep their CEO, Tim Cook safe. The report by Patently Apple explains the full expenditure in detail.
“This amount represents: (i) the Company’s contributions to Mr. Cook’s account under its 401 (k) plan in the amount of $15,600; (ii) Company-paid term life insurance premiums in the amount of $2,520; (iii) vacation cash-out in the amount of $56,923; and (iv) security expenses in the amount of $699,133.”
This amount also includes home and personal security to Tim Cook.
However, this amount is quite low in comparison with some other companies. You will be surprised to see what other companies spend on the security of their CEOs. The list is topped by Amazon, which spent nearly $1.6 million in 2013 for the security of their CEO, Jeff Bezos. Apparently, even today, Amazon spends the highest amount for the safety of their leader; however, the exact amount is not disclosed by the company. Oracle grabs the second position in the list, which spent $1.5 million in 2013 on the security of their CEO, Larry Ellison. Disney also spends nearly $584,075 on the security of their CEO, Bob Iger. Evidently, the amount these companies spend on security of the CEOs varies every year.