00:00Today on Forbes, how the ultra-wealthy are protecting themselves against arson attacks,
00:06kidnapping, and worse. Billionaires are more concerned than ever about the safety of themselves
00:12and their families. Tensions spiked after the fatal shooting of United Healthcare CEO Brian
00:18Thompson in December. Then came the January kidnapping of French cryptocurrency founder
00:23David Balland, who was held for ransom for two days while assailants mutilated his hand,
00:29followed by an April arson attack on the home of billionaire Steve Sarowitz by a suspect who
00:34also made ransom and kidnapping threats, according to prosecutors. These assaults have come as
00:40resentment toward the rich and powerful, increases amid wealth inequality, overseas wars, and
00:46hyper-polarized politics. A recent Emerson survey, for instance, reported that 41% of voters aged 18
00:54to 29 believe Luigi Mangione's alleged murder of Thompson was, quote, acceptable. Mangione has
01:01pleaded not guilty. Risk management company Nisos found that online threats against CEOs increased
01:0841% as well in the six weeks following the shooting. All of this has led the nation's wealthiest people
01:15and the companies that employ them to seek out personal security at increased rates over the
01:20past few months, 13 firms tell Forbes. Five companies said the number of inquiries for their
01:26services was among the highest ever, while four said it was the highest. Allied Universal, the biggest
01:32provider of private security guards in the world, says it's getting 1,500% more threat assessment requests
01:38than this time last year. James Hamilton, a consultant at Gavin DeBecker and founder of Hamilton Security
01:45Group, says, quote, a lot of companies are nervous right now. The firms that are newly investing in
01:52protection for their executives are at a disadvantage, he explains, because there aren't enough credible
01:57security outfits to cover everyone, and many are already tied up with long-term clients. He says,
02:03quote, if you say to me, hey, we just want to hire a guy for the next 90 days until things die down,
02:09well, I don't want to do that as a business owner. The shortage has also caused a spike in people
02:16pretending to be security experts online. The industry is regulated at the state level.
02:22Some jurisdictions have rigorous licensing requirements, while others do not. The lack
02:26of national standards means many prospective clients have trouble distinguishing between specialists
02:31and scammers. Chris Falkenberg, founder of Insight Risk Management, says, quote, it's really,
02:39really easy to impersonate an executive protection person. There's a low barrier to entry. It requires
02:44you to get a state license, but that's just a few days for the training. To get a firearms permit,
02:50also quite easy. Then, you know, you go buy a pair of sunglasses, and for all intents and purposes,
02:55you look like an EP person. Hiring a somewhat reputable bodyguard on the cheap
03:01might cost as little as $120,000 per year, but that's rarely what experts recommend to mitigate
03:07risk. In fact, most U.S. billionaires don't have a full-time bodyguard. Among the more common services,
03:15a team that monitors the internet for threats and leaked personal information, the typical cost for
03:20that at the most elite firms is $200,000 to $300,000 per year for sophisticated 24-7 coverage.
03:27Another common service is personal drivers who also have security training.
03:31Cost is $250,000 to $500,000 for two drivers. Then there's residential security, including cameras
03:39and armed guards, costing $750,000 to over $1 million. And of course, there's protection while
03:46traveling. Costs vary based on location. A full executive protection team, which tends to involve
03:54all of the above, plus part-time bodyguards who have medical training and professionals who secure
03:59sites before a billionaire arrives, costs at least $2 million, and frequently much more,
04:06with team members often making $200,000 each. This according to the experts polled by Forbes.
04:13These costs are sometimes covered by companies as part of executives' compensation packages.
04:18The U.S. tax code allows employees to write off that benefit as long as there is a demonstrable
04:23cause for safety concerns. Last year, Snap paid $2.8 million for CEO and co-founder Evan Spiegel's
04:30personal security. Alphabet paid $8.3 million for CEO Sundar Pichai. And Meta paid $24.4 million
04:40to protect Mark Zuckerberg and his family. For full coverage, check out Monica Hunter Hart's piece
04:47on Forbes.com. This is Kieran Meadows from Forbes. Thanks for tuning in.
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