United Healthcare CEO shoots: Executives worry about safety

UnitedHealthcare CEO Brian Thompson was fatally shot Wednesday when he did something countless other American executives do routinely: walk unescorted to his company’s investor event.

But Thompson’s death this week in the heart of the US capital has sent shockwaves through the business world, forcing companies to reconsider the risks of even the most routine executive responsibilities.

“Everyone’s trying to say, ‘Are we safe?'” said Chuck Randolphchief security officer of Ontic, an Austin, Texas-based provider of threat management software. “This is a turning point where the idea of ​​executive protection is now being elevated to the board level. Everyone I know in the industry is feeling this.”

Security professionals say threats against companies have been increasing for years, fueled in part by the social media echo chamber and a more polarized political climate. But the murder on a Manhattan sidewalk of Thompson, head of the largest private health insurer in the US, is the most high-profile incident in decades.

Companies are now concerned that their leaders are at greater risk of becoming targets of violence, especially as they host more public investor events in New York in the coming weeks.

The shooter is still at large and his motivation is unknown. Words written on shell casings found at the scene could provide clues as to what prompted the shooter.

One question from security experts not involved in the case was whether the shooter aired grievances against UnitedHealthcare in online forums and sought information about the investor event. Several health care companies responded by pulling photos of executives from websites, and health insurer Centene held an investor meeting virtually after the killing.

According to NYPD officials, Thompson did not have a security guard with him Wednesday morning, despite known threats against him. According to the company, none of UnitedHealth’s executives received personal safety benefits files.

Had Thompson done so, several key factors would have been different. Staff are said to have gone to the hotel before his arrival to detect threats; he was also said to have been accompanied by armed security who may have used an alternate hotel entrance Scott Stewarta vice president of TorchStone Global.

“This was preventable,” said Stewart, who said he had been in the industry for nearly 40 years. “I have never seen an executive with an extensive security program become so victimized.”

Still, before this week’s shocking events, it wasn’t unusual for executives to refuse security because of the disruption to their lives, or the image it could create, several security veterans said.

“Not every CEO needs heavy protection,” said the security chief of a tech company who was denied permission to speak to the press. “Senior executives are subject to threats all day long, you need a platform to investigate them and determine whether they are credible and timely,” he said.

Since Thompson’s killing, a broad spectrum of companies have sought additional protections for executives, Matthew Dumpert, managing director at Kroll Enterprise Security Risk Management, told CNBC.

There will be several financial conferences in New York in the coming weeks where CEOs will be attending in person. So far, the biggest concern about these events has been disruption by environmentalists and other protesters, said an executive at a major bank.

“Everyone is looking and thinking about the security of their seniors,” said an executive at a major Wall Street firm, who declined to be identified for fear it would draw attention.

Some corporate security veterans said they are seen as a cost center whose leaders are “too buried within an organization to listen to.”

“The prejudice is that safety is a sore point, and not that important,” said the person, who requested anonymity to speak candidly.

“I hope this opens their eyes,” he said. “Risk information and assessment are important, and security is about much more than just guns, guards and gates.”

— CNBC’s Jordan Novet, Bertha Coombs and Dan Mangan contributed to this report