Facebook Inc. (NASDAQ:FB) spent around $23 million in security for its CEO Mark Zuckerberg in 2020. According to an SEC filing, the company approved its directors’ security services in January and February following heightened security threats on Zuckerberg.
Facebook enhanced the security of its CEO due to increased threat
The statement indicated that Zuckerberg is synonymous with the company; thus, any negative sentiment regarding the company is related directly with and transferred to the CEO. The social media giant’s annual security programs review indicated that the cost of protecting the CEO and his family increased in 2020 because of COVID-19 travel protocol and security coverage during last year’s US elections.
A section in the filing called “all other compensation,” the company indicated that it spent $23 million in personal security at his homes and for travel. Zuckerberg also received an additional $10 million for security personnel, equipment, residential improvements, and security-related costs. The increased cost raised Zuckerberg’s base security costs from $10 million to $13.4 million.
The company’s statement indicated that Zuckerberg is among the most recognized CEO globally due to the size of the company’s user base and continued exposure to global legislative, regulatory, and media attention. The company indicated that security was approved for all its non-employee directors and executive officer after a “dynamic and charged atmosphere” post the 2020 US election and US Capitol Building insurgence on January 6.
Facebook to provide security for non-employee directors
According to the compensation committee, the costs are necessary and appropriate following the threat landscape. Zuckerberg has asked to receive an annual salary of $1 and does not receive bonus payment or equity awards, or any other incentive compensation. Facebook has also indicated that it will introduce a proposal on offering personal security to its non-employee directors during the May 26 shareholder meeting.
In 2020, Facebook COO Sheryl Sandberg made around $22.5 million after receiving a $4.76 million bonus to continue her strategic leadership. Her leadership resulted in a strong performance in revenue and support for small businesses.