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9/16/2008 @ 11:39AM

The Cost Of Protecting The CEO

Lehman Brothers Chief Executive Richard Fuld did learn a thing or twofrom the fall of Bear Stearns. hen the !"#$ear#old all Street institution

nearl$ went out of %usiness a few months ago %efore %eing swe&t u&

%$ 'P(organ Chase ) 'ames Ca$ne) Bear*s chairman) hired a %od$guard.

+ccording to recent news re&orts) Fuld has followed suit. ,e allegedl$ has

-e&t out of sight and when he a&&ears) it*s with what seems to %e hired

&rotection. +fter all) $ou can*t %e too careful if $ou*re held accounta%le for

severel$ de&leting the wealth of thousands of &eo&le vested in the firm*s

future.

hether or not a %usiness is in financial ruin) guarding the %oss is of the

utmost im&ortance these da$s.

+merica*s largest cor&orations are &a$ing millions of dollars a $ear to

&rotect their C#level talent) &articularl$ the CEO. That &ersonal securit$) as

descri%ed in com&ensation re&orts filed with the .S. Securities and

Exchange Commission) includes ever$thing from com&uteri/ed home

s$stems to use of com&an$ aircraft domesticall$ and internationall$) %oth

for %usiness and &ersonal matters. The cost incurred %$ com&anies fallsunder the &er0uisite) or 1&er-)2 categor$.

+mong .S. chief executives) Oracle*s Larr$ Ellison is rac-ing u& the highest

&ersonal securit$ costs345.6 million in 7886) according to com&ensation

re&orts filed with the SEC %$ his com&an$. & there with him are Limited

Brands CEO Leslie exner 945.7" million: and +ma/on.com CEO and

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founder 'eff Be/os) 945.7 million:. +ll three men are on the list of For%es*

richest &eo&le) which &artl$ ex&lains the fuss.

In Pictures: The Cost Of Protecting The CEO

Ellison*s securit$ ex&enses are notoriousl$ high3the %illionaire has alsos&ent a considera%le sum of his own mone$ installing toof#the#line

securit$ s$stems at his (ali%u and oodside) Calif.) estates.

Securit$ s&ecialist +lan Schissel said that in cases where com&anies are

&a$ing such incredi%le amounts) it*s li-el$ for a team to watch the %oss*

%ac-) in addition to an$ home#securit$ s$stem costs. That goes for at the

office) on the road and even at home.

Schissel) CEO of ;ntegrated Securit$ Services) said that someone with 7

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To ensure the safet$ of their leaders) as well as their leaders* families) some

large &u%lic com&anies mandate &rivate air&lane use for all %usiness and

some &rivate travel. +t Ford (otor ) CEO +lan (ullal$ s&ent 46"7)888

using the com&an$ >et last $ear. The CEO of Chesa&ea-e Energ$ ) +u%re$

(cClendon) s&ent 4?88)888) while Star%uc-s CEO ,oward Schul/ s&ent

4oc-e$.

+ccording to the %oo-Just 2 Seconds) which anal$/es hundreds of attac-s

on &u%lic figures from 5@68 to 7888) the ma>orit$ ha&&ened while the

victims were in or around their cars.

+ trained securit$ driver adds an extra la$er of &rotection3often the most

im&ortant la$er) said 'ose&h +utera) senior instructor and &resident of

Ton$ Scotti*sAehicle $namics ;nstitute. ;f a CEO is ever attac-ed while on

the go) 1that driver ma$ %e the onl$ real &rotection the executive has at that

moment.2

;f a trained driver had %een on the >o%) things might have gone differentl$

for financier Edward Lam&ert in 788. +%ducted from his com&an$ &ar-ing

garage) the ESL ;nvestments chairman was held for ransom for a little less

than two da$s) until convincing his ca&tors to release him.

hat are the ris-sD +ccording toJust 2 Seconds) %usiness executives aren*t

targeted for assassination as often as other &rominent individuals. Of

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successful attac-s on &u%lic figures worldwide from 5@68 to 7888) ?! of

the targets were &oliticians and government officials) and >ust ? were

%usiness executives.

,owever) when -idna&&ing is the aim) their &ro&ortion rises. The %oo-) co#

written %$ Tom Ta$lor) 'eff (ar0uart and avin de Bec-er) %est#selling

author of The Gift of Fear) sa$s that of ?" -idna&&ing incidents where a

&u%lic figure was the target) 5 were executives) %ehind governmental

officials at