Executives Are in Real Danger. Companies Pony Up to Keep Them Safe.

New York Police Department officers respond to July 28 shootings in a Midtown Manhattan office building. (Victor J. Blue/Bloomberg)

In the wake of last week’s horrific shooting in Midtown Manhattan, where a shooter killed two security personnel and two executives, companies are rethinking security protocols…again.

There have been other deadly attacks in Manhattan. A gunman fatally shot UnitedHealthcare CEO Brian Thompson only five blocks away in December.

Security expenditures for C-suite executives of the 500 largest U.S. public companies were rising sharply even before the latest New York City shootings, according to a new study by research firm Equilar. The study notes that 34% of executives at these companies received security perks in 2024, up from 23% of them in 2020. The median security spend for executives climbed to $106,500 in 2024 from $48,500 in 2020.

The danger is real and not fleeting, according to experts.

“Companies are underestimating the extent to which threats of physical violence and harassment are being increasingly normalized,” former Air Force security officer Ben Joelson, head of security risk & resilience of the Chertoff Group, told Equilar. Joelson points to a recent study by Rutgers’ Network Contagion Research Institute that found “a broader ‘assassination culture’ appears to be emerging within segments of the U.S. public,” with a significant percentage of respondents to a recent survey stating that it was “somewhat justified” to use murder to address a political grievance.

The Equilar report notes that tech and communication services companies saw the biggest jump in security spending. Nvidia increased its security spend to $2.2 million last year from $656,000 in 2023. ServiceNow increased its expenditure to $2.1 million in 2024 from $67,000 in 2023.

Which businesses are most at risk? Paul Donahue, president of global security services at Constellis, notes in the Equilar report that “industries—and brands—that are deeply embedded in the daily lives of citizens are more likely to be focal points for security concerns and public scrutiny.” Donahue says this includes sectors such as healthcare, oil and gas, electric utilities, the automotive industry, and food suppliers.

It also includes pro football, it seems. The shooter in the recent Midtown Manhattan shootings was upset about football-related brain injuries and was targeting the National Football League office in that building, officials said.

Both Joelson and Donahue note that artificial intelligence is a new security threat in that it can aid attackers into tricking security personnel and systems. “The most pressing security threat is the growing accessibility bad actors have to advanced technology—often at a low cost,” notes Donahue. “These adversaries only need to get it right once, whereas the good guys have to get it right every time.”

Expect to see more security spending and more visible security. “For at least the next 18 to 24 months, a certain level of security paranoia is warranted,” Donahue says. “While we often say that security is most effective when it’s invisible, the reality is that some threats require a visible deterrent.”

Write to Andy Serwer at andy.serwer@barrons.com