Executive Security in Focus

Companies are taking a hard look at executive security after the tragic murder of UnitedHealthcare CEO Brian Thompson in Midtown Manhattan.

Why it matters: A focus on safety is crucial in an era of distrust, availability of firearms, and online access to personal and location information for corporate executives.

• By the numbers: An HR Policy pulse survey conducted after the murder found 73% of members provide executive security and over half plan to enhance security in the next 12 months (results preliminary; final forthcoming).

The big picture: The incident has prompted boards and management to scrutinize existing security measures.

• A recent HBR piece highlights key questions companies should be asking about threat levels, vulnerabilities, and consequences.

Disclosure and tax issues: Inconsistent IRS and SEC guidelines may pose challenges to beefing up executive security. 

• The IRS allows an exclusion from wage income if an “overall security program” is established and there is a “a business-oriented security concern.” 

• But the SEC offers no such exclusion – security outside the office is considered a perk and must be included in total pay in the proxy.

• ISS continues to scrutinize perks, but rarely recommends against a company’s Say on Pay vote based on high security costs.

What’s next: As companies review security plans and update crisis management approaches, stay tuned for our upcoming detailed survey results on current and future executive security arrangements.