‘You can’t make millions of dollars without picking several enemies along the way’, so goes the age-old corporate world adage. While it is not quite possible to approach such a byword from an objective angle, prevailing situations in today’s corporate world make the proverb relevant.
Take the case of Zynga Inc (NASDAQ:ZNGA) CEO, Marc Pinus. The other day, we covered the story of how Pinus spent overwhelming amounts of hard-earned company money to enhance and spruce up his personal security. Zynga Inc (NASDAQ:ZNGA)’s bottom line would have reflected an additional $1.37 million. However, this swelling amount was used to furnish first-rate security services for Pinus and his family.
The latest Robinhood Investors Conference is in the books, and some hedge funds made an appearance at the conference. In a panel on hedge funds moderated by Maverick Capital's Lee Ainslie, Ricky Sandler of Eminence Capital, Gaurav Kapadia of XN and Glen Kacher of Light Street discussed their own hedge funds and various aspects of Read More
Pinus is not alone. His disposition actually brims. This is because very many CEOs exhibit the need for high-end security. Nonetheless, some of them like Pinus spend more than usual on security, and pass the impression that being a CEO in the higher end of the global corporate world is life threatening. This begs one predominant question; how much security do CEOs really need?
To fully understand the level of security that a CEO needs, it would be in order to establish some of the reasons that create a need for security in the first place. While the big paycheck and fleet of cars may attract the need for security, they can be dealt with by the same police officers who deal with backstreet criminals.
The main reasons that prompt these CEO’s need for enhanced security extend beyond the attractive paychecks and lavish lifestyles
Here are a few of the principle reasons.
Disgruntled employees and poor social standing:
When Pinus saw that Zynga’s game making business had led the company to the very doors of the public market, he oversaw a dauntless yet inconsiderate move; a move that may yet haunt him and drag him into the court room.
What did he do? Pinus, alongside his fold of top executives, arrived at the conclusion that the company had given too much stock to employees and instructed employees to give back the extra money or risk termination of contract. In addition to that, Pinus and his executives did not settle for fairness as they directed the give backs towards employees who they deemed not fit enough for the cash bonanza in the wake of the IPO.
This move not only tainted Pinus’ image within the company, but also dented his social standing. In fact, a personal sentiment shared to ValueWalk, from a person close to Pinus, paints a picture of a despicable person.
With this to carry on his shoulders, Pinus constantly needs tight security. You never know when a disgruntled employee who lost their home will strike, or perhaps the employee who had invested their all in the company’s stock. All the same, Pinus needs the protection.
Jamie Dimon, JPMorgan Chase & Co. (NYSE:JPM) CEO, can also be held in such regard. Last month, protestors disrupted his opening ceremony, painting a picture of frustration and sheer dislike. Some of the protestors even labeled him a crook, while some of them hurled disparaging expressions amid the ruckus. He also needs that extra piece of muscle in his security.
Politics is never safe, no justifications needed. Warren Buffet, commonly known as the Oracle of Omaha, is not a politician. Nonetheless, he wields unmatched political influence. If Buffet supports your economical agenda during your campaign trail, you will surely rake in millions of votes.
After taking into account the bulging political influence that Buffet commands, security is one of his top priorities. This explains why he is linked to Clark International- a high end security firm that is traceable to Buffet’s long-time body guard Dan Clark.
Just to keep you on track, Clark International extends security services to top officials and widely celebrated personalities. George Clooney, the actor, and Sarah Palin, the former Alaska governor, have both used Clark’s services.
A mere sneak peek into Clark’s operations reveals that in addition to accessing similar outdoor gun ranges as the Omaha National Guard Swat Team security personnel, the firm’s security personnel also uses military grade weapons.
With this kind of security around Buffet, it makes sense to conclude that burglars are not his threat. His threat is far bigger, and as such, requires enhanced and sophisticated security. His inclination towards heavy security is substantially driven by the huge role he plays in both local and international politics.
Big wig CEOs need tight security, not specifically for the primary purpose of protecting them from opportunistic criminals, but more importantly for their social standing and the approach they assume while handling their corporate duties.