CEO-security compensation – many of us might be having not heard the world but it plays one of the most important roles in today’s world. Among the 180 large companies analyzed by Hay Group so far for a coming pay survey, 24 reported amounts for CEO-security compensation that ranged from less than $1,000 to nearly $1.7 million.
Zynga paid more than most to keep its chief executive safe. The social gaming giant spent $1.37 million to safeguard CEO Mark Pincus and his family as he drew greater attention ahead of an initial public offering in December and pursued legal action against a woman who he says violated a restraining order.
David Larcker, a Stanford Graduate School of Business professor, said spending on executive security has generally increased as CEOs experience the same deterioration in privacy as everyone else living a constantly Internet-connected life. “It’s a less secure world,” Mr. Larcker said.
Pincus’s compensation in 2010 included $69,687 for his personal security, according to a regulatory filing. It isn’t unusual for companies to spend significantly on security for their CEOs. But Zynga has laid out a large amount for a five-year-old company, which is currently valued around $8 billion. The payout represented most of Mr. Pincus’s compensation for the year. He also made a $300,000 salary and a $3,750 bonus, although he does now own a roughly 13% stake. He also has nearly 36% of the company’s total voting power.