The Advisors' Blog

A recent memo from Compensation Advisory Partners adds more data to what you may have already sensed: More companies – especially large caps – are providing personal security arrangements for executives that meet the definition of perquisites. However, it’s still not quite a majority.

The memo is based on data from 90 companies with fiscal years ending between March and November 2025, and looked at their 3-year history of personal security arrangements and aircraft perks. Here are a few key findings:

– Among the companies in CAP’s sample, the prevalence of CEO personal security perquisites has increased steadily over the past three years to 44.4% for 2025. Notably, changes in prevalence reflect only the addition of CEO security perks, with no companies eliminating them during the period reviewed. This contrasts with other perquisites – such as personal use of corporate aircraft – where companies both add and eliminate benefits over time. The absence of eliminations suggests that once implemented, CEO security perks are generally viewed as necessary, ongoing risk-mitigation measures rather than discretionary benefits.

– Among companies that disclosed the value of CEO personal security perquisites, reported costs varied widely depending on the scope of security provided. While the median value declined year over year, a majority of companies (72.0%) reported an increase in their CEO security perk value, and the average value increased, indicating an upward trend across the broader sample. The average CEO security perk value is significantly above the 75th percentile, driven by high-cost outliers.

– Among the companies in CAP’s sample, the prevalence of CEO aircraft perks has increased modestly over the past three years to 44.4% for 2025. 100% of the companies that introduced a CEO aircraft perk in 2025 cited security-related considerations in their proxy disclosures, and 100% of the companies that eliminated their aircraft perk experienced a CEO transition, with the outgoing CEO receiving the benefit and the incoming CEO not receiving it.

The memo also found that – while security arrangements tend to vary – they generally include a mix of the following elements, often based on a security study or other risk assessment:

– Residential security measures (e.g., alarm systems, surveillance, monitoring)

– Executive protection personnel (event-based or ongoing)

– Secure ground transportation arrangements

– Security support during domestic and international travel

– Digital or information security services

– Liz Dunshee