CEOs at Fortune 100 companies get expensive perks — including cars and drivers, jets and gyms.
The value of CEO perquisites in the U.S. — goodies like personal use of the corporate jet, cars and drivers, gyms and extra retirement contributions — jumped 8.6 per cent in 2011, the most recent full year of data available, says a recent study by Equilar, an executive compensation data firm. (Visit the firm at equilar.com). CEOs at Fortune 100 companies got a median $248,638 worth of perks.
"Giving out more perks to executives while most employees are struggling with stagnant pay, cuts in benefits and unemployment adds insult to injury," says Jennifer O'Dell, of the Laborers' International Union of North America.
Boards are so generous that perks alone can add up to more than what most people make in a lifetime, points out Stephen Lerner, a former union organizer for the Service Employees International Union. Jeff Bezos at Amazon.com (AMZN) and Larry Ellison at Oracle (ORCL), both multibillionaires, each got more than $1.5 million for home security alone. "It is obscene," says Lerner, who adds, "CEOs are the new royalty."
But this is more than a social issue. Because perks aren't generally linked to performance, they do nothing to motivate execs to create value for shareholders, the supposed purpose of high executive pay. Combined with excessive pay, generous perks can signal poor corporate governance, which can lead to poor stock performance.
Click through this slideshow, for the CEOs who got the biggest perks in several of the categories Equilar studied, ending with the all-around perk king.
* All dollar amounts in USD.
* Bing: Highest-paid CEOs
Have your say
Should new wireless companies Mobilicity, Wind Mobile and Public Mobile be allowed to fail?
Thanks for being one of the first people to vote. Results will be available soon. Check for results
- Yes, the market will decide if they are competitive enough to survive.
- No, the playing field in the wireless market is not level. The government should help these companies.
- I don't know.
Gold is trending back up, but how long will this run last? Frank McGhee, Head Precious Metals Trader at Integrated Brokerage Services shares his though... More Gold is trending back up, but how long will this run last? Frank McGhee, Head Precious Metals Trader at Integrated Brokerage Services shares his thoughts on this yellow metal.
Date 4 mins ago, Duration 4:56, Views 0