Schwab Paid $2.68M to Protect CEO

Charles R. Schwab, chairman and chief executive officer of brokerage firm The Charles Schwab Corp, is protected by the company — literally.

The San Francisco-based company has spent $2.68 million since 2003 for security systems and equipment to protect Schwab, the company’s founder and its public face, according to its proxy, which was filed this week with the Securities and Exchange Commission.

“These systems were established on the recommendation of an independent, third-party consulting firm retained in 2002 as part of the company’s business protection plans and are not maintained for the personal benefit of the Chairman and Chief Executive Officer,” the proxy states. “Pursuant to the consultant’s security study, the company provided Mr. Schwab with the installation and maintenance of a security system at his personal residence, as well as security at his personal residence prior to the installation of the security system.”

Security services for Schwab cost $370,022 in 2005; $2,000,315 in 2004 and $309,966 in 2003, according to the proxy. The amounts don’t include portions of the home security system installation that Schwab paid for personally.

Schwab, 68, earned $4.25 million in salary, bonus and perquisites in 2005, according to the proxy.