How Secure is Your CEO?

Posted by: Jena McGregor on June 25, 2008

They get paid for dying. They get to ride in private airplanes. And a good number of them—at least 91 out of the 247 major company proxies recently reviewed by the Wall Street Journal—get their own security detail.

According to the study, published last week and highlighted here on Valley Wag, the biggest spender was Oracle, which paid $1.7 million in 2007 for Larry Ellison’s security. Macy’s spent $87,000 to protect Terry Lundgren. Limited Brands CEO Leslie Wexner got $1.25 million toward personal security, which included use of corporate aircrfat.

Here’s an idea: Why not just pay them less, making their massive estates less tempting to criminals or others who would endanger their safety? The fact that one person can be so irreplaceable to a company that shareholders need to spend more than $1 million on their security is far beyond me.

Reader Comments

mazmiin

June 26, 2008 2:57 AM

They have no safety as they life is worth a million to the company as they bring luck and bring prosperity to the company

Gee Jay

June 26, 2008 5:08 PM

agreed and then some .Overdue for a correction to the total exceutive pay
system. Corporations are being raped ,shareholders cheated , workers losing jobs because of the im balance of executive pay, hip pocket boards.
Something needs to be done.Do you want to join in the effort?

Squeezebox

June 27, 2008 1:45 PM

CEO's should be paid strictly on commission like top salesmen are. Then they'd only get paid when they gave the shareholders results. The boards should also carefully define what the basis of the commissions would be so that there would be less manipulation of results to make the CEO look good. The only way to make that happen is to kick the CEO's buddies off the boards and elect the board from among the major shareholders.

MG

June 29, 2008 12:53 PM

If the CEOs weren't flown in a private jet and paid nicely, would you aspire to own a company Jena? Maybe you won't, but it's most people's dream - to become rich and famous!

Michelle

July 2, 2008 4:12 PM

MG: Not everyone aspires to own a company and furthermore not everyone is qualified to run one though that does not seem to stop some people from trying. It is utterly ridiculous. How about the CEOs pay their own security detail? The CEOs can deduct it from their taxes maybe. A company should not be in business to protect its CEO. How ridiculous.

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