Focused on the detail

Chief executives in the US are increasingly concerned about their security, according to a survey from the proxy advisers ISS.

A survey of CEO ”perquisites” reveals that 2024 saw the largest annual increase in security perks so far seen among S&P 500 chief executives.

In the S&P 500, 22.5% of companies provide security expenses while the rate is 2.7% among the Russell 3000.

Keen observers will remember 2024 was the year in which Brian Thompson, the CEO of United Healthcare, was murdered in Manhattan. No surprise security spending is up.

Snide and prejudiced

The Financial Times reports this week that “nationality is no longer irrelevant for global CEOs”.

Anjli Raval writes that MAGA stans are now beginning to notice the nationality of the CEOs at some of the biggest US companies—and they’re not happy.

FedEx chief executive Raj Subramaniam has faced “racist vitriol” over his Indian background, while no less than Donald Trump himself called for Intel’s CEO, Lip-Bu Tan, born in Malaysia, to resign, claiming he was too close to China, though he backtracked a few days later.

It’s all very disturbing and more so when you consider that half of the FTSE 100’s CEOs were born outside the UK.

And what of UK politics? Raval writes that she has been reassured by UK board chairs that they will continue to tap into the global market for CEO talent, even if Nigel Farage leads Reform into power at the next election.

The fact that this is even a discussion reveals an appalling insight about the state of politics in the US and the UK.

Raval concludes: “Foreign-born leaders are not likely to disappear wholesale from the tops of global companies. But in an era of hardening borders and more fractious geopolitics, their nationality is no longer irrelevant.

“That means ultimately boards could risk losing out on top talent, should they prioritise political point-scoring over their businesses.”

That’s a business case. Allow us to make a moral argument: racism and bigotry are just wrong.

Risky businesses

European CEOs are trying to balance governance with risk control, according to a survey from the Conference Board.

While the top two governance priorities are revenue growth (45.5%) and strategic planning (44.1%), in third place comes enterprise risk management at 27.1%—way above their US counterparts at 15.8%.

There were also differences on diversity. In Europe, 18% of CEOs say it’s one of their top concerns, against only 11% globally.

“This suggests that even in a period of modest growth,” says the Conference Board report, “Europe’s boards continue to view diversity as a lever for better decision making and stakeholder trust.” As it should be.