A Russian Tycoon's Private Army

You've heard about Dennis Kozlowski's $6,000 shower curtain and Conrad Black's $40,000 birthday party, but what about Roman Abramovich's $400,000 chief of security?

According to the Sunday Times of London, Russian billionaire Roman Abramovich maintains a 40-man security force fit for a king - or at least a head of state.

And this is not retired or off-duty rent-a-cops either. Abramovich's defense detail is made up of highly skilled professionals, including former solidiers of the S.A.S., Britain's elite commando unit, in addition to Glock-toting bodyguards. Abramovich's primary yacht is equipped with bulletproof glass, a missile detection system, and a helicopter and private submarine that function as escape vehicles.

All told, Abramovich's self-defense regime carries an annual price tag of around $2.4 million. All this for a man whose public appearances largely consist of attending the matches of Chelsea, the London soccer team he bought in 2003.

While Abramovich's safety measures might be unusual for a businessman, The Times notes that the London-based tycoon is not the only high-profile executive who requires a big investment in personal protection. Eric Schmidt, the chief executive of Google, sets his security budget at around $500,000 a year, and Oracle founder Larry Ellison has a $1.8 million budget to maintain his peace of mind.

For executives of publicly held companies, these security tabs might seem a bit rich.

Questions about security budgets, however, rarely get raised. After all, it seems unfair to criticize money spent on personal safety - it is hardly the same thing as throwing away thousands on home decor or elaborate champagne blowouts. And no doubt the continued health and well-being of the executives are of enormous value to the companies and their shareholders.

So just how large does a personal security budget have to be before it stops counting as a legitimate defense measure, and becomes a matter of excess and vanity? Ellison has surely made enemies in Silicon Valley, but does he really need $1.8 billion worth of protection?

Abramovich doesn't have shareholders to question his defense spending.

In Russia, of course, business is done a little differently. Murder and kidnapping attempts on businessmen have not been uncommon. Russian military guards and escape submarines could just be the cost of doing business for an oligarch.

And admittedly, living like James Bond is one heck of a perk.

Liz Gunnison

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