Friday, April 13, 2012

Be Safe Rather Than Sorry

That's a mantra for many Fortune 500 companies.  Why else would they spend significant money on making sure that their CEOs are secure?  The primary way they can meet that obligation is to make sure the CEO always travels by private plane, even if he is traveling to his vacation spot.  Other ways to protect the CEO?  Home alarm systems, 24-hour monitoring, chauffeur-driven vehicles. 

The real reason why companies spend so much money on the CEO's security is to minimize the tax consequences of some perks.  If a company can get a 'consultant' to declare that the CEO needs to fly on a private plane for his safety whether or not he is flying on business, the CEO's tax burden is reduced.  But it is not only the CEO's flight costs that are covered by the company, those of his family also are.  

And security is needed not only in the air but on the ground.  Northrop Grumman bought its lead director a new 'more secure residence'. 

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