Facebook spent over Rs 46 lakhs daily on CEO Mark Zuckerberg’s 'personal security' in 2020

Co-founder of Facebook and internet entrepreneur Mark Zuckerberg recently made headlines for an unusual reason. It has been reported on April 11 that social media giant Facebook has spent $23 million (Rs 171 crore approximately) on the American media magnate’s security just for 2020.

According to a proxy statement filed with the US Securities and Exchange Commission (SEC), in an annual review meeting, it was discovered that the company’s security detail identified ‘specific threats’ to Zuckerberg.

Zuckerberg's personal travels and security detail cost Facebook 171 crores in 2020

The official statement released by Facebook in regard to the issue noted, ‘He (Mark Zuckerberg) is synonymous with Facebook, and as a result, negative sentiment regarding our company is directly associated with, and often transferred to, Mr Zuckerberg’.

It was reported earlier by The Verge that Facebook’s security expenditure rose considerably in 2020 because it had to spend on personal security for Zuckerberg’s residences and for the CEO and his family’s travels. This shot the expenses up from $13 million (Rs 97 crore approximately) a year to an additional $10 million (Rs 75 crore approximately) a year.

The company further added context to the breakup of expenditures in its detailed statement where it mentioned that ‘Under Mr Zuckerberg’s overall security programme, we pay for costs related to personal security for Mr Zuckerberg at his residences and during personal travel, including the annual costs of security personnel for his protection and the procurement, installation, and maintenance of certain security measures for his residences'.

Notably, the company also provides an annual pre-tax allowance of $10 million to cover costs related to Zuckerberg and his family’s security. In addition to this, Zuckerberg’s travels with personal aircraft are also included in the overall security programme. Although the internet mogul’s security detail may vary from year to year, depending on the security requisite, travel schedules, number of guests accompanying him, along with other factors, the company stated that the increased cost in 2020 was primarily due to frequent “personal travels”, costs added up because of Covid-19 pandemic and increased security coverage during the tumultuous 2020 US elections, which heightened Zuckerberg’s security risk and market increases in the cost of security personnel.

What’s interesting to note is that Zuckerberg, though a co-founder and CEO of Facebook continues to receive only $1 in annual salary and does not receive any bonus payments, equity rewards or any other form of incentive compensation, according to the company.