Posted on February 19, 2010.
Are CEO is not just a majority of Americans? By VINNEE TONG, AP Business Writer Vinnee Tong, Fri Ap Business Writer - May 1, 12:07 pm ET
NEW YORK - U.S. companies are generous with the benefits they give to the CEO, including some that are unfathomable to the average American workers chauffeur, bodyguards, club memberships and free travel in jets company.
The median value of these benefits and others increased by nearly 7 percent in 2008, according to an Associated Press analysis of regulatory filings of 309 companies in the Standard & Poor's 500. The increase is the same as CEO total compensation has declined 7 percent to 7.6 million.
Perks has increased despite a public backlash against such benefits, which many investors and lawmakers consider excessive. They support well-paid executives should cover the cost of life insurance, charitable giving and financial planning services themselves, particularly as companies struggle with declining profits, stock prices collapsed and deletions massive job.
Even some compensation consultants say enough is enough.
"These are things the average person, the average Joe does not, so we say, do not give them benefits," said Paul Dorf, a general manager to pay compensation consultant Resources Inc.
But many companies keep the taps open. Occidental Petroleum CEO Ray Irani, for example, has received $ 400,000 worth of financial planning, which is part of a package of $ 30 million compensation in 2008. In other words, that $ 400,000 in financial planning is more than the total annual income of the vast majority of Americans. Occidental spokesman Richard Kline said the overall financial planning assistance Irani 'keep your full attention on the business of the company. "
The median value of benefits - which is the midpoint at which half of the executives have received more and half less - was $ 170,501 in 2008, against $ 159,586 last year. Only three CEOs in the survey received no benefits in 2008 AP.
And benefits constituted a larger percentage of total compensation, rising to 2.25 percent in 2008, up slightly from 1.95 percent, the AP analysis found.
The primary source of income benefits in 2008 was Johnson & Johnson CEO William Weldon. Its benefits package worth $ 3.9 million, about 16 percent of its $ 23 million in total compensation. Included in his package was a benefit payment of $ 3.6 million to a pension plan, or about $ 154,000 in personal flights on the corporate jet and $ 26,000 for a car with driver.
Only a CEO saw his compensation paid in full benefits in 2008: Richard Fairbank of Capital One Financial Corp. ($ 68,344). He received a car allowance, insurance, health care and homeland security.
Some companies go further. Cablevision Systems Corp. executives offered by cable television and free high speed Internet service and use the service travel company to book personal travel. Defense Halliburton Co., meanwhile, has two separate programs to match donations to charitable and another that stimulates the political picture.
Fort Worth, Texas, XTO Energy has $ 3.4 million to Baylor University to help build a new sports complex. It was the second tranche of a total of $ 6.8 million pledge in 2007 to complete now retired CEO Bob Simpson's own $ 3.2 million donation to his alma mater.
XTO generosity extended to a school than children unnamed Simpson attend. She received a donation of $ 775,000 in 2008, the fourth installment of a gift of $ 3.1 million. A company spokesman did not return a call for comment.
On the other hand, some companies are increasingly using these payments Perk, mostly in cash that leaders can draw on their taste for the benefits they want. For example, Tyco International CEO Edward Breen has received a $ 70,000 cash perk in 2008, while Reynolds American.
