The life of a CEO is tremendously fast paced and involves very little time outside of the work environment. While CEOs are constantly inundated with a massive number of responsibilities and time commitments, it is no secret that these individuals are compensated well for performing their duties. To effectively incentivize these individuals, companies often award “other compensation” in the form of benefits and perquisites to their CEOs.
In this segment, Equilar analyzed the most popular CEO perks across the Equilar 500 in 2017. The most prevalent perk category was corporate aircraft, which had a median expense of $94,465. Mark Zuckerberg of Facebook had the highest aircraft expense in 2017 at $1,524,975. The second most prevalent perk was automobile, which had a median of $20,811—Francisco D’Souza of Cognizant Technology Solutions accumulated the highest automobile expense at $128,646.
A handful of corporations offer relocation expenses to their CEOs, particularly in an instance when a company is attempting to lure a CEO candidate to a new city. As a result, relocation expenses had the second highest median of the perks included in this study at $81,479 in 2017, with John Flannery, who was CEO at General Electric at the time, raking in the highest expense at $1,051,254.
There is no question that the cost to attract and retain talented CEOs is high, and companies have made a concerted effort to keep their CEOs pleased during strenuous workflow. However, with the heightened level of scrutiny around executive pay in recent years, particularly from the investor community, it will be worth noting how these perks pan out in the years to come. Regardless, when perks of this nature are awarded, it would be of all parties’ benefit to include detail within an SEC filing as to why the perk was included in an executive pay plan, particularly when the perk yields a high dollar value.