The average person might go into total shock when they find out how much Apple spends each year to keep their CEO, Tim Cook, safe and sound.
The average family income in the United States, according to NPR, is $64,000 dollars a year. Reportedly, Apple spends nearly $700,000 a year to keep Tim Cook secure. This amount equates to more than 10 times what an average family earns in a year, to pay for all of their expenses.
This information comes from the good people at Patently Apple. They reportedly gathered Apple’s expenditure information from the company’s 14A report of its SEC filing. The SEC filing goes on to read…
This amount represents: (i) the Company’s contributions to Mr. Cook’s account under its 401(k) plan in the amount of $15,600; (ii) Company-paid term life insurance premiums in the amount of $2,520; (iii) vacation cash-out in the amount of $56,923; and (iv) security expenses in the amount of $699,133.”
All of Tim Cook’s other benefits seem miniscule in comparison to the amount the amount spent on security. Which leads us to believe that the money spent on security is essential, and no dollar spent was wasted, considering Tim Cook is a high-profile “celebrity” of some sorts.
It is assumed that protecting Tim Cook’s modest home is where most of the money goes. Earlier this year, we did a piece on the homes of Apple’s most notable people, which includes Tim Cook and his miniature-modern luxury abode.
Tim Cook’s home can currently be seen from Google maps with his BMW parked out front. The “modest” home is modern looking and sleek, a dream home for many. While not a mansion by any means, Cook’s home is still very cool. The 2,400 square foot home boasts four bedrooms and a small yard. The relatively modest home was purchased for $1.9 million in 2010 and is most likely worth a lot more today. Tim Cook was quoted stating “I like to be reminded of where I came from, and putting myself in modest surroundings helps me do that. Money is not a motivator for me.”
As you can see, Tim Cook doesn’t live in a gated community and doesn’t have much privacy either. Living in such a densely populated area means any criminal could walk right up to Mr. Cook’s home if they wished, however they would regret it immediately. With that much money spent on security, it wouldn’t be surprising if the CEO had a personal SWAT team watching over his home.
Jony Ive, Apple’s lead designer, currently lives in a four bedroom, 7 ½ bath mansion in San Francisco. The street the home is located on is reportedly nicknamed “Billionaire’s Row.” This street is lined with many other historically significant homes, which average $3,280 per square foot. Ive’s mansion was originally listed for $25 million dollars and purchased at an astounding “discount” for only $17 million dollars.”
While it’s unknown how much Ive or the rest of Apple’s elite spend on security, we can only assume the amount is similar. Possibly even more, as it would take plenty of technology and manpower to keep control over a home so massive.
Either way, astoundingly, Apple is not spending as much money on security as other Fortune 100 companies to protect their CEOs. According to The Stranger, who sourced data from the executive compensation research firm Equilar, “Jeff Bezos [Amazon’s CEO] must have some enemies, real or imagined. Amazon spends more money making sure its CEO is safe than all other Fortune 100 companies, including Disney, Coca Cola, Exxon Mobil, and Goldman Sachs.
This data is relatively old, considering that it came from 2013, but still gives an idea of comparison. Interestingly, Apple doesn’t even make the list. We wonder if this is the first time that Apple has released their security costs or if they just recently bumped up their security costs in 2015 high enough that it would make the list this year. If the latter is true, then something threatening must’ve happened Tim Cook this year to spook him.
It’s true that $700,000 dollars is a lot of money, no matter how you split it. To spend that much money, on one person, for one thing, seems a little ridiculous. But when it comes down to it, that $700,000 spent on security could save this high-profile CEO’s life at some point, making it a worthy investment for him and his family.