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Protecting Mark Zuckerberg is not cheap.
Facebook recently approved $ 10 million in annual security costs for its CEO Mark Zuckerberg and his family. The social networking giant has announced the increase of the pre-tax guarantee in a SEC filing on Thursday.
Zuckerberg can spend money for bodyguards, security measures for Zuckerberg homes and private planes, according to the filing.
Extract from Filing:
"On July 24, 2018, the Committee approved an annual pre-tax allowance of $ 10 million to Mr. Zuckerberg to cover the additional costs related to his personal safety and that of his family. in addition to the ongoing funding of Mr. Zuckerberg's comprehensive security program to cover the costs of protecting security personnel, the purchase, installation and maintenance of certain security measures required to his residences and the use of private aircraft for personal travel.This allowance will be paid to Mr. Zuckerberg, net of the required tax deductions, and Mr. Zuckerberg may allocate the net proceeds to the payment. of staff, equipment, services, home improvements or other costs related to security.
Facebook stated that the cost was justified and for the benefit of the. enter taken, because "of the importance of Mr. Zuckerberg to Facebook."
Facebook had a difficult and highly publicized year. In April, Zuckerberg testified in front of Congress, and Facebook's role in distributing misinformation and new politics sparked outbursts of anger around the world.
In 2017, Zuckerberg visited each state as a personal mission, a factor that led to an increase of nearly 50% in security costs this 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 increases even more. In April, CNBC reported that Equilar, a research firm on executive pay, said Zuckerberg's previous security costs represented "the largest margin" among large corporations in the past five years.
Zuckerberg's base salary will be $ 1 in 2018, but the vast majority of his wealth is tied to his existing stake in Facebook. It's currently worth $ 67.1 billion, according to Forbes, even after Facebook dropped 19% earlier this week.
The full text of the filing is as follows:
As previously stated, the Compensation and Governance Committee (the Committee) of our Board of Directors has authorized a comprehensive security program for Mark Zuckerberg to meet the security concerns His security stems directly from his position as founder, president and chief executive officer of Facebook. We need security measures for the benefit of the company because of the importance of Mr Zuckerberg for Facebook. The Committee regularly reviews Mr. Zuckerberg's safety program and the associated costs, which vary from year to year depending on the safety measures required, Mr. Zuckerberg's travel schedule and the timing of the trip. 39 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 personal safety and that of his family. This allocation will be added to the ongoing funding of Mr. Zuckerberg's comprehensive security program to cover the costs of protecting security staff; the acquisition, installation and maintenance of certain security measures required for its residences; and the use of private aircraft for personal journeys. This allowance will be paid to Mr. Zuckerberg, net of the required tax deductions, and Mr. Zuckerberg may use the net proceeds to pay for personnel, equipment, services, home improvements or other other costs related to security.
In approving this annual security allowance, the Committee took into consideration Mr. Zuckerberg's position and importance for Facebook and the fact that Mr. Zuckerberg asked for only $ 1 in annual salary and did not receive any premium or equity payment. The Committee also reviewed comparative data from the peer group that Facebook compares for executive compensation purposes, as well as other relevant information regarding executive compensation and perquisites. The Panel finds that this award, as well as the costs of Mr. Zuckerberg's existing comprehensive security program, are appropriate and necessary in the circumstances.
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