Facebook approves $10 million to protect CEO a day before losing $16.8 billion

Jul 30, 2018 by beatsonline - Comments Off on Facebook approves $10 million to protect CEO a day before losing $16.8 billion

 Mark Zuckerberg, on Tuesday, July 24, 2018 – a day before it lost $16.8 billion in almost two hours when its shares tumbled.

In a report by Yahoo Finance, the social networking giant approved the sum of $10 million in annual security costs for Mark Zuckerberg and his family.

Facebook announced the increase in the pre-tax allowance security for Zuckerberg in a SEC filing on Thursday, July 26, 2018.

It was further reported that the 34-year-old American technology entrepreneur can spend the funds on his bodyguards, security measures for his houses, and private aircraft.

Here’s Facebook filing to SEC:

As previously disclosed, the Compensation & Governance Committee (the Committee) of our Board of Directors has authorized an overall security program for Mark Zuckerberg to address safety concerns due to specific threats to his safety arising directly as a result of his position as Facebook’s founder, Chairman, and CEO.

Mark ZuckerbergMark Zuckerberg

 (News Flash)

“We require security measures for the company’s benefit because of the importance of Mr. Zuckerberg to Facebook.

“The Committee regularly reviews Mr. Zuckerberg’s security program and the related costs, which vary from year to year depending on requisite security measures, Mr. Zuckerberg’s travel schedule, and other factors.

On July 24, 2018, the Committee approved an annual pre-tax allowance of $10 million to Mr. Zuckerberg to cover additional costs related to his and his family’s personal security.

This allowance will be in addition to the continued funding of Mr. Zuckerberg’s overall security program to cover the costs of security personnel for his protection; the procurement, installation, and maintenance of certain required security measures for his residences; and the usage of private aircraft for personal travel.

This allowance will be paid to Mr. Zuckerberg net of required tax withholdings, and Mr. Zuckerberg may apply the net proceeds to pay for additional personnel, equipment, services, residential improvements, or other security-related costs.