After reviewing the Google (GOOG) proxy, Henry Blodget asks a reasonable question: How did Eric Schmidt spend $474,662 on security last year? One answer: By spending $58,093 less than he did the year before.
We don’t know what Eric did to trim back his $532,755 bill from 2006, and we still don’t know why the company spends a half-mil on his security — but nothing on Larry and Sergey’s. But we do know that by CEO standards, Eric’s costs aren’t beyond the pale. And by at least one measuring stick, Eric’s security needs are minimal: Last year Oracle (ORCL) paid $1.7 million for Larry Ellison’s security tab.
All this and more can be found in an excellent Forbes.com piece by our former colleague Lisa Lerer, who pored through SEC filings and talked to experts to get a sense of who spends what on corporate security, and what they spend it on. Key takeaway re: Eric, Larry, Sergey and Larry:
So is Ellison in more danger then Google’s famous founders? Not necessarily, say security experts. Most likely, they argue, neither company is fully disclosing their security spending, but are instead folding some of them into expenses that aren’t listed in SEC filings. “Those executives are most likely not revealing their high-end costs,” says Bruce Alexander, president of executive protection consulting firm All Source Consulting Group. “I would guess that they are under-reporting.”
Other good nuggets, some of which are unfortunately buried in an user-unfriendly slide show:
- That $1.7 million didn’t cover all of Larry’s costs: He footed the bill himself to install security systems at his Malibu and Woodside estates.
- Biggest costs? labour. Run of the mill guards start at $60 an hour. Personal bodyguards start at $75k.
- MasterCard spent $3,193 on CEO Robert Selander’s security.
- Harrah’s Entertainment spent $277k on CEO Gary Loveman’s security.
- JP Morgan Chase spent $686 protecting Jamie Dimon