Baseline Executive Protection Costs
Typically, the cost of a fully manned Security Detail can be estimated from 2%-5% of the clients NET Value (NET Value $500,000,000 multiplied by 5% = $2,500,000).
The cost of Executive Protection may seem costly, but you must take into consideration the manpower needed to protect a high NET value client for just one year around the clock.
Have you considered the costs and damage possible that would be caused by just one surprise ambush that potentially results in the kidnapping or death of your Executive operating without protection?
In comparison, Executive Protection Costs greatly pale to the ripple effect and damage your company faces without proper preparedness and security,
What Does the Cost of Executive Protection Get?
When Corporate Executive Protection is implemented, there are no telltale signs of attacks because the security plan is working. A question we often hear when debating the cost is, “Does this mean that the security is not needed, when there hasn’t been an attack?” Our answer is no, because lack of threats means that the security is useful; a very hard idea to accept in most companies. We’ve heard it numerous times and the comment is always the same: “Why do I need security if nothing has ever happened to me?”
Do you recall what happened to Exxon President Sidney Reso? He was kidnapped and summarily killed. What astonished most people was that there were no death threats and no indicators of an imminent attack. He felt so safe that from day in and day out, his routine was the same. His death in 1992 could have been averted had he had an effective security plan in place. We believe his death could have been prevented.
Below are basic Executive Protection Costs outlined for a fully manned security detail based on the country average and the cost from the 1992 kidnapping and death of Exxon President Sidney J. Reso.
We’ll let you decide which is better for business, Executive Protection or Company-wide damage control.
(Estimated Costs, all costs are not included)
Quick Analysis: Real-Life Example of Corporate Executive Protection Costs
In April 1992, Exxon President, Sidney Reso was kidnapped outside of his New Jersey Estate by an environmentalist group called “Warriors of the Rainbow.” His habit for many years was to drive to the end of his driveway and get the newspaper from his mailbox at same time every day.
How Exxon Exec Became a Target
The President of Exxon was targeted because of his daily routine, the companies transparency regarding executive personal information and the $15 million paid ransom in South America earlier, indicating that Exxon would pay again as SOP.
After close research and surveillance by the kidnappers, Mr. Reso was a targeted for the kidnapping because he was an easy target to capture. When he was kidnapped, there was no Executive Security in place.
Paying the ransom doesn’t always work. After the $18.5 million ransom was paid, Reso was abandoned and left for dead in the woods. A security detail around the clock at his residence could have prevented this attack.
When your position rises within a company to the point of scrutiny, a security team can provide more than just protection. They can provide an executive service that helps the client be more efficient with their time and resources while ensuring they can continue in their business goals.
APOD Group will develop a Security Management Plan that best suits your goals and concerns. Contact us today for a free consultation and risk analysis.