OpEd: The $1.7 Million Discussion: The “Cost” of Executive Protection

Recently it was published that UnitedHealth Group (UNH) spent nearly $1.7 million in executive security in 2024, according to its annual filings. It has been over four months since that unfortunate event and while companies are taking a serious look at their enterprise’s protective services, many are simply asking the wrong question – is it worth the price we have budgeted?

As a long-time security service practitioner, I offer the following as a way of helping CSOs (Chief Security Officers) and the like not only find the answer to this question but also evaluate their theoretical/physical security needs; even if you presently have full-time, in-house security.

First, most CFOs already know that under the IRC 132, employees of corporations are permitted “certain fringe benefits [which] can be provided through a bona fide reimbursement arrangement.” This includes protective services. Of course, the amount that can be deducted for tax purposes varies considerably and there are a myriad conditions for the “service” in question. But, the IRS makes it quite easy to at least afford a commensurate level of budget to protect a corporation’s senior leadership and their family.

Second, executive protection goes beyond the c-suite – it extends anywhere senior leadership (and their family) may travel. That means a protective detail needs to be as fluid and proactive as possible. Furthermore, it needs to extend beyond physical security detail. That is why we advocate for a comprehensive security program; central surveillance, local operatives, and a cyber presence that begins days and weeks before a client begins their travel. The recent arson attack on PA Governor Josh Shapiro’s home underscores the importance of having a holistic protective services detail, beyond just cameras and alarm systems.

Third, no detail is too small. A highly regimented checklist and precise diary is crucial to ensuring the security (and comfort) of a client. And for high-net-worth clients, the devils are indeed in the details, especially the vetting of anyone providing direct or indirect services to the client and their family. Checklist items can also include medical emergency and allergy preparedness, basic CPR/first aid, routes to hospitals, and more.

Given that dire events like the UNH assassination are (thankfully) still rare by statistical measures, having a security partner with the experience and precision to manage the secondary and tertiary details can be just as important as the primary objective – protecting the client.

This brings us back to the question at hand – what should your protection service budget be? Unfortunately, there is never an easy, “one sized” answer. And perhaps the “cost” is not the question at hand.

Rather, CEOs and CSOs may be able to better determine whether their existing budget is adequately providing the protective services they need by answering this key question:

Does it cost us anything to at least consider an additional framework and/or resource to prevent the unthinkable?

If you would like to set up a discreet, no-obligation consultation call, feel free to contact us today at info@arrowsecurity.com, and include the subject line “RE: EP Confidential”.

About the Author

Mike Mullady
Vice President, Protective Services

Mike is a seasoned security expert with over 22 years in the NYPD (retired Detective Sergeant), and has designed & operated security programs for colleges, universities, and several Fortune 100 companies, including some of the largest tech companies in the country.

He is recognized as a subject matter expert in developing and implementing security strategies, with extensive experience conducting threat and risk assessments, implementing countermeasure solutions, and collaborating with executive management teams to align unique business requirements and deliverables.

Mike is also a U.S. Navy Reserve, and served in Operation Desert Storm, having been awarded the National Defense Medal.