Compensia’s “Executive Security Arrangements: Top of Mind In 2025” shares data regarding proxy disclosure of executive personal security arrangements for S&P 500 and Russell 3000 companies for the most recent fiscal year for which data is available as of August 2024.
- Nearly one-quarter (24%) of the S&P 500 disclosed personal security arrangements with a value of $10,000 or more for specified named executive officers, most commonly, the CEO, during the year, ranging in cost from ~$11,000 to ~$9.4 million. This compares to just 2% of non-S&P 500 companies that made similar disclosure, with costs ranging from $54,000 to $3.7 million.
- Forty-nine (total) S&P 500 and Russell 3000 companies disclosed personal security arrangements with costs greater than $250,000. By industry, disclosure of such arrangements was much more prevalent among companies in the technology and technology-related entertainment industries than companies in other industries.
The article includes a summary of SEC disclosure requirements, a brief mention of how companies document security arrangement expenses for IRS deductibility purposes, and guidance for management and boards on how to properly support the necessity and costs associated with these types of arrangements.
This post first appeared in the weekly Society Alert!