The cost of maintaining Warren Buffett’s personal and home security, covered by Berkshire Hathaway, experienced a notable decline of 19% from its peak in 2016, amounting to $313,595 in 2023 according to recent public disclosures by the company. These security expenses typically encompass various measures such as home security systems, security guards for the CEO and their family, defensive driving services, and even cybersecurity insurance and defense.
Jun Frank, managing director and global head of compensation and governance advisory at ISS-Corporate, explained that home security perks for CEOs, including Buffett, have become more prevalent in recent years, rising from 12.6% in 2020 to 15.7% in 2023 among S&P 500 CEOs. This increase contrasts with the decline seen in other executive compensation perks during the same period.
While the median value of security perks for CEOs rose from $34,300 in 2020 to $40,700 in 2023, Buffett’s security costs have fluctuated over the years, averaging approximately $312,000.
According to Frank, fluctuations in security costs are often attributed to factors such as changes in travel frequency, vacations, and alarm system installations and maintenance. He noted that inflation plays a significant role in driving up the overall cost of personal security perks, as the prices of goods and services increase over time.
Moreover, Frank highlighted shifts in the threat landscape for CEOs, with some individuals assuming more visible roles or expressing political stances, leading to increased scrutiny and potential security risks. However, he emphasized that the board typically reviews security measures annually, taking into account fluctuations in perceived threats.
Last year, Meta Platforms disclosed an increase in founder and CEO Mark Zuckerberg’s security perk from $10 million to $14 million, one of the highest among large-cap companies. A security assessment identified specific threats to Zuckerberg, stemming from his high-profile roles as CEO, chair, and controlling shareholder. The company stated in its disclosures that negative sentiment towards Meta is often associated directly with Zuckerberg due to his synonymous association with the company. In comparison, Alphabet CEO Sundar Pichai, who was the highest-paid CEO last year at $226 million, received personal security perks totaling $5,935,084.
Pfizer incurred security expenses of $789,495 for CEO Albert Bourla due to heightened security risks and threats, necessitating additional security measures.
According to ISS-Corporate’s survey on perks, financial services firms in the S&P 500 experienced the largest increase in the adoption of home security perks for CEOs, followed by IT companies.
Wells Fargo covered costs of $81,264 for CEO Charles Scharf in 2023 to implement residential physical and cyber security enhancements, with $66,465 allocated for installation expenses. Similarly, American Express spent $138,532 on CEO Stephen Squeri for home security and security during personal trips.