Facebook recently approved $10 million in annual security costs for its CEO Mark Zuckerberg and his family. The social networking giant announced the increase in the pre-tax allowance security in an SEC filing on Thursday.
Zuckerberg can spend the money on bodyguards, security measures and private aircraft, according to the filing.
The filling says:
“On July 24, 2018, the Committee approved an annual pre-tax allowance of $10 million to Mr. Zuckerberg to cover additional costs related to his and his family’s personal security. This allowance will be in addition to the continued funding of Mr. Zuckerberg’s overall security programme to cover the costs of security personnel for his protection; the procurement, installation, and maintenance of certain required security measures for his residences; and the usage of private aircraft for personal travel. This allowance will be paid to Mr. Zuckerberg net of required tax withholdings, and Mr. Zuckerberg may apply the net proceeds to pay for additional personnel, equipment, services, residential improvements, or other security-related costs.”
Facebook said that the cost was justified and for the company’s benefit because “of the importance of Mr. Zuckerberg to Facebook.”
Facebook has had a difficult, high-profile year. In April, Zuckerberg testified before Congress, and Facebook’s role in the distribution of misinformation and political news has caused bursts of anger around the world.
In 2017, Zuckerberg visited every single state as a personal mission, one factor that led to a nearly 50% bump in security costs in that year to $7,326,640. Facebook spent $4,891,441 in 2016 and $4,256,004 in 2015 to protect its CEO.
Now the cost to protect Zuckerberg is rising even higher.
Zuckerberg’s base salary will be $1 in 2018, but the vast majority of his wealth is tied to his existing stake in Facebook. He’s currently worth $67.1 billion, according to Forbes, even after Facebook shares dropped 19% earlier this week.
The filing said:
“As previously disclosed, the Compensation & Governance Committee (the Committee) of our Board of Directors has authorized an overall security programme for Mark Zuckerberg to address safety concerns due to specific threats to his safety arising directly as a result of his position as Facebook’s founder, Chairman, and CEO. We require security measures for the company’s benefit because of the importance of Mr. Zuckerberg to Facebook. The Committee regularly reviews Mr. Zuckerberg’s security programme and the related costs, which vary from year to year depending on requisite security measures, Mr. Zuckerberg’s travel schedule, and other factors.
“On July 24, 2018, the Committee approved an annual pre-tax allowance of $10 million to Mr. Zuckerberg to cover additional costs related to his and his family’s personal security. This allowance will be in addition to the continued funding of Mr. Zuckerberg’s overall security programme to cover the costs of security personnel for his protection; the procurement, installation, and maintenance of certain required security measures for his residences; and the usage of private aircraft for personal travel.