Executive perks to avoid
Shareholder rights are trendy all over again. Given the climate, boards must be savvy and vigilant about lavishing perks on executives. The last thing you want is a PR crisis on your hands, regarding business jet use, fancy New York condos or lavish concierge services. According to MarketWatch, one recent CEO got more than $400,000 worth of tax preparation and financial planning services. In previous years, that would have gone unnoticed. Now, you've got to at least think about it.
Even if a you think your executives deserve it, you have to be sensitive to the political winds. Here are some egregious perks (with examples) to watch for from MarketWatch:
- Parting gifts
- Office renovations
- Life insurance, AKA, golden coffins
- Gross-ups, payments to cover taxes on payouts
- Tax preparation
- Personal security systems
- Country club memberships
- Cars and gas
- Family travel perks
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