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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 ExecutivesLaptops, 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
Percent of companies by size(# of employees)
Up to 100
101 to 1,000
Supplemental life insurance
Income tax preparation
Supplemental disability insurance
Automobile lease payments
Airline club memberships
Supplemental retirement programs
Personal use of corporate auto
Country club memberships
Health club memberships
Limousine car service
Personal use of corporate plane
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 permissionArticle Source: Culpepper eBulletin, March 2008Complimentary subscriptions at: http://www.culpepper.com/eBulletin
Data source:Culpepper Pay Practices and Benefits Survey of 80 organizations.
Survey Dates:January—March 2008.
Breakdown by size:• Up to 100 employees: 41 percent.• Over 100 to 1,000 employees: 33 percent.• Over 1,000 employees: 26 percent.
Breakdown by sector:• Technology: 74 percent.• Life science: 14 percent.• Health care services: 5 percent.• Other: 7 percent.
Breakdown by country:• United States: 94 percent.• Canada: 4 percent.• Other: 2 percent.
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