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24x7Report > Blog > Finance > Analysis-US companies spending record amounts to protect executives as threats rise
Finance

Analysis-US companies spending record amounts to protect executives as threats rise

Last updated: 2025/08/06 at 6:32 PM
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7 Min Read
Reuters
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By Ross Kerber and Isla Binnie

(Reuters) -U.S. corporations are spending document quantities to maintain their executives protected in response to rising threats and the killings of two high-profile company officers in separate assaults in Manhattan during the last eight months.

Companies have doubled the variety of plain-clothed safety groups outdoors buildings in New York Metropolis since a taking pictures final week by which 4 individuals have been killed, mentioned Glen Kucera, president of the improved safety providers unit at Allied Common, a safety and amenities providers agency.

“It is unspeakable. I by no means knew anybody who was murdered,” mentioned Wealthy Friedman, chairman of Goldman Sachs Asset Administration, who beforehand labored with one of many victims, Blackstone govt Wesley LePatner. Her loss of life shook Wall Avenue, regardless that authorities consider her killing was a random occasion. Police mentioned the shooter was concentrating on the headquarters of the Nationwide Soccer League, which is housed in the identical constructing within the Midtown space of Manhattan the place LePatner labored. The shooter additionally killed a New York Metropolis police officer, constructing safety guard and worker at actual property firm Rudin earlier than turning the gun on himself.

The assault was “stunning and hits very near residence,” Citigroup spokesperson Ed Skyler mentioned in a word to workers a day after the July 28 killings in Midtown. “Understandably, yesterday has additionally left many people feeling uneasy,” he mentioned, assuring workers that the financial institution has beefed up safety at its Manhattan headquarters during the last 12 months.

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Threats towards executives “have massively ramped up since 2020,” mentioned Chris Pierson, the CEO of cybersecurity agency BlackCloak. He famous how the person charged with murdering a Minnesota lawmaker and her husband close to Minneapolis in June allegedly stored a goal record of largely different politicians and used on-line people-search providers to search out their addresses.

Ben Joelson, head of safety danger and resilience for the Chertoff Group, a safety advisory agency, mentioned threats towards executives are larger than at any time within the decade he has labored within the discipline, with social media posts magnifying complaints towards institutional leaders. Synthetic intelligence is compounding the issue, resulting in an “exponential rise” in practical phishing makes an attempt, Joelson was cited as saying in a report by analysis agency Equilar.

When UnitedHealthcare CEO Brian Thompson was shot to loss of life in New York in December, it gave the impression to be a really uncommon “black swan occasion,” Joelson advised Reuters in an interview. However focused assaults have continued, together with the killings in Minnesota and the taking pictures deaths of two workers of the Israeli embassy in Washington in Could. “It is more and more acceptable for some dangerous actors or adversaries to handle grievances by way of violence,” which has led many corporations to place a brand new give attention to safety, Joelson mentioned.

Matthew Dumpert, world chief of enterprise safety danger administration at monetary and danger advisory agency Kroll, mentioned quite a lot of current and new purchasers reached out final week following the lethal assault in Midtown.

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“A number of of the outreaches on to me have been by the manager committees … whoever owns danger. It is chief authorized officers, admin officers, compliance officers, safety officers,” Dumpert mentioned. He added that a number of purchasers that had emergency response tasks slated to begin later this 12 months have requested him to “put these on the entrance burner. Begin instantly, and let’s transfer ahead.”

‘TREND IS UNSURPRISING’

Median spending on govt safety for prime officers together with chief executives, chief monetary officers and others rose 16% to a document $106,530 final 12 months, in line with new information from Equilar, which reviewed monetary filings for the five hundred largest U.S. public corporations by income.

Safety spending consists of surveillance and alarm programs for executives’ houses, private guards and cybersecurity protections. Equilar analysts mentioned the development is more likely to proceed as corporations grapple with the rising threats to their executives and workers.

The share of executives at these corporations with such safety rose to 33.8% from 23.3% over the 2020-2024 interval, Equilar mentioned. Almost a 3rd of CEOs within the group, 32.4%, obtained safety providers final 12 months, up from 21.9% in 2020; the worth of these CEOs’ safety perks reached a median $77,976 final 12 months, up from $40,052 in 2020.

Tech corporations had the largest development in implementing safety measures for executives, with a 73.5% bounce in these receiving the advantages from 2020 to 2024, however communications corporations spent essentially the most, at a median worth of $1.2 million a 12 months, Equilar discovered.

See also  Disney drops to lowest in over three years as investors turn bearish

Blue-chip corporations similar to Walmart, Common Motors, American Categorical, and chipmaker Broadcom, beforehand disclosed new or elevated safety bills from earlier years following Thompson’s killing.

“The development is unsurprising contemplating the broader issues about govt security amid geopolitical instability, rising cyber threats and the excessive public visibility of prime management roles,” Equilar mentioned in its report.

(Reporting by Ross Kerber in Boston and Isla Binnie, Lananh Nguyen and Tatiana Bautzer in New York; Modifying by Daybreak Kopecki and Paul Simao)

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TAGGED: amounts, AnalysisUS, Companies, executives, protect, record, rise, Spending, Threats

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