Special perks and fringe benefits have long been used to attract, reward and improve the productivity of executives. But in recent years executive perquisites have become a lightning rod for controversy. In response to increased scrutiny and governmental regulation, many companies started cutting back on the perks and fringe benefits they provided to executives in 2006.
Results from a recent Culpepper Pay Practices and Benefits Survey reveal that most North American technology and life science companies have stopped trimming their executive perk packages. Nearly all respondents indicated that they plan to continue providing similar levels of perks and fringe benefits in 2008 as they did in 2007.
Perquisites Provided to Executives
Laptops, home PCs, mobile phones and personal digital assistants (PDAs) are the most common perks provided to executives.
In general, as companies increase in size they will provide more executive perks and fringe benefits. Small companies and start-ups typically provide fewer perks for executives. One early-stage, fast growth tech participant indicated that their total rewards program for executives emphasized cash and equity compensation, with virtually no perks.
Perquisites Provided to Executives | ||||
Type of Perk | All companies | Percent of companies by size | ||
Up to 100 | 101 to 1,000 | Over 1,000 | ||
Laptops/ |
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Mobile phones/ |
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Employment contracts |
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Annual physical |
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Financial counseling |
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Reserved/paid parking |
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Supplemental life insurance |
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Income tax preparation |
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Supplemental disability insurance |
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Automobile lease payments |
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Airline club memberships |
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Supplemental retirement programs |
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In-office meals |
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Personal use of corporate auto |
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Entertainment tickets |
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Tax gross-ups |
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Country club memberships |
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Health club memberships |
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Home security |
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Limousine car service |
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Personal use of corporate plane |
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Dry cleaning |
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| 3% | 0% |
Legal counsel |
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Jeremy Greenup is a research analyst at Culpepper and Associates Inc., which conducts worldwide salary surveys and provides benchmark data for compensation and employee benefit programs. Leigh Culpepper is president and CEO of the firm.
Reposted with permission
Article Source: Culpepper eBulletin, March 2008
Complimentary subscriptions at: http://www.culpepper.com/eBulletin
Data source: Survey Dates: Breakdown by size: Breakdown by sector: Breakdown by country: |
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