Amid lay-off season, Mark Zuckerberg allotted $14 million for security, but he’ll probably spend much more than that
1 min read . Updated: 16 Feb 2023, 09:24 AM IST
PremiumMark Zuckerberg's security costs are higher than most of his peers like Amazon founder Jeff Bezos and Apple CEO Tim Cook.
Meta Platforms, on February 15, announced that it had increased by $4 million to a total of $14 million the security allowance offered to Chief Executive Mark Zuckerberg and his family.
The decision was made at a time after Mark Zuckerberg, the owner of Facebook and Instagram, had laid off around 11,000 people and scaled back spending plans for what he has dubbed it the "Year of Efficiency".
"This increased allowance, together with the costs of Zuckerberg's existing overall security program, are appropriate and necessary under the circumstances," Meta said in a filing.
With a $1 basic salary and no stock-based rewards, the majority of Zuckerberg's income was made up of security expenditures. According to Forbes, Zuckerberg's net worth is roughly $78 billion.
Also Read: Another round of Meta layoffs soon? Mark Zuckerberg questions manager roles
While Meta says the budget is $14 million, it will probably spend much more than that to provide security to Zuckerberg and his family. In 2021, the company spent over $15 million on costs associated with the protection of its CEO while he was at home and on personal business.
However, The said budget excluded $1.6 million for usage of a private jet for personal travel or an additional $10 million allocated to Zuckerberg as a pre-tax allowance for his family's protection. That is why, even though the budget is set at $14 million this time, the Meta boss will probably spend much more than that on security.
In November 2022, after Meta had fired 11,000 employees, Zuckerberg claimed that he was to blame for the company's rapid expansion since he had bet against the sustainability of the rise in social media use and online purchasing during the pandemic.
Also Read: Facebook’s Zuckerberg could soon face the threat of prison
The job cuts are anticipated to save $1.5 billion, or just 1 point of operating margin, despite the fact that the company continues operations with 13% fewer employees.
Even though companies typically shell out a lot of cash for security and travel expenses for important leaders, Zuckerberg's protection costs are higher than most of his peers.
In 2022, Amazon founder Jeff Bezos spent nearly $1.6 million on security and business travel. Apple CEO Tim Cook incurred security costs of $630,630 and travel costs of $712,488 totaling $1,030,630.
