American corporations are spending hundreds of thousands of dollars on the “personal security” of their executives, measures that include the use of private jets, personal drivers and other luxury perks.

The payments, made by companies such as Google, the internet search group, AIG, the insurer, and Yum! Brands, the owner of KFC, were devised after consultation with third-party security consultants, according to proxy statements reviewed by The Times.

Eric Schmidt, the chief executive of Google, received perks worth more than $530,000 (£270,000) last year related to his personal security, according to company documents filed with the US Securities and Exchange Commission.

However, Sergey Brin and Larry Page, the founders of Google and arguably higher-profile public figures than the administrative chief executive, were not paid anything in respect of their personal security last year.

Google was not the only company to pay its chief executive hundreds of thousands of dollars to take care of their personal security arrangements. Martin Sullivan, the chief executive of AIG, the insurance giant, was paid a total of $683,262 in additional payments and so-called “perquisites and benefits” last year.

Of that sum $278,250 was paid in respect of “housing, home security and living expenses”; $135,014 was paid for a car and driver; while $257,498 was paid for the use of private jets by Mr Sullivan and his family. The payments were justified in the proxy statement as necessary for Mr Sullivan’s personal security.

“As a result of recommendations in independent third-party security studies,” the company wrote, “AIG’s Board policy requires Mr Sullivan, his spouse and his children under the age of 18 to use corporate aircraft for personal travel.

“In addition, AIG’s Board has determined to provide Mr Sullivan with a dedicated automobile and driver and has provided security enhancements for Mr Sullivan’s home, both as the result of an outside security review.”

Yum! Brands also made big payments to David Novak, the chief executive, and his family after undertaking so-called security reviews. Mr Novak received total salary and other payments of more than $12 million last year, with more than $170,000 paid-for extras, including personal security. The Yum! proxy statement explains that Mr Novak declined to take payments to cover country club membership but is allowed to use a private jet for security reasons. “Mr Novak is required to use the company aircraft for personal as well as business travel pursuant to the company’s executive security programme established by the board of directors,” the company wrote, adding, “The board’s security programme also covers Mrs Novak.”

Executive perks such as private jet use are nothing new, but characterising them as necessary for personal security is a recent development and comes as shareholder groups and the SEC seek greater clarification of executive expenses from public companies.

Last year Mr Schmidt did not receive any payments for his personal security. Microsoft, meanwhile, paid less than $50,000 to ensure the personal security of Bill Gates, its founder and the world’s richest man, according to the company’s most recent proxy statement, which covers 2005.

Richard Blaksley, a corporate security expert at GPW, a UK-based investigations company, said that the new trend was alarming. “These numbers strike me as awfully big to be paid to an individual,” Mr Blaksley said. “If a company is doing what it should in terms of keeping its executives and their company safe, which is necessary, then it should not need to make these large taxable benefits to individual employees.”

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