Special perks and fringe benefits
have long been used to attract, reward, and improve the
productivity of executives. However, in recent years, executive
perquisites have been 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 2008 Culpepper Pay Practices and Benefits Survey
reveal that most 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 PDAs are the most common perks
provided to executives
(Table 1).
In general,
as companies increase in size they will provide more perks and
fringe benefits to executives. 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.
|
Table 1:
Perquisites Provided to Executives |
|
Type of Perquisite |
All
Companies |
Percent of Companies by
Size
(# of Employees) |
|
Up to 100 |
101 to 1,000 |
Over 1,000 |
|
Laptops / Home PCs |
77% |
67% |
91% |
74% |
|
Mobile Phones / PDAs |
76% |
67% |
86% |
80% |
|
Employment Contracts |
28% |
17% |
30% |
37% |
|
Annual Physical |
18% |
7% |
13% |
52% |
|
Financial Counseling |
18% |
4% |
9% |
50% |
|
Reserved / Paid Parking |
17% |
17% |
15% |
26% |
|
Supplemental Life
Insurance |
17% |
18% |
21% |
20% |
|
Income Tax Preparation |
16% |
5% |
9% |
38% |
|
Supplemental Disability
Insurance |
16% |
8% |
29% |
25% |
|
Automobile Lease Payments |
13% |
6% |
16% |
24% |
|
Airline Club Memberships |
10% |
3% |
16% |
14% |
|
Supplemental Retirement
Programs |
10% |
2% |
6% |
32% |
|
In-Office Meals |
9% |
8% |
0% |
13% |
|
Personal Use of Corporate
Automobile |
9% |
5% |
9% |
14% |
|
Entertainment Tickets |
8% |
9% |
4% |
10% |
|
Tax Gross-Ups |
8% |
3% |
7% |
21% |
|
Country Club Memberships |
7% |
2% |
5% |
12% |
|
Health Club Memberships |
5% |
5% |
0% |
8% |
|
Home Security |
5% |
0% |
1% |
12% |
|
Limousine Car Service |
5% |
4% |
4% |
6% |
|
Personal Use of Corporate
Aircraft |
5% |
0% |
0% |
17% |
|
Dry-Cleaning |
4% |
1% |
3% |
0% |
|
Legal Counsel |
4% |
2% |
1% |
5% |
Differences
Between Types of Executives
The use of
perquisites and fringe
benefits varies significantly
between executives. In addition to Table 1, we
provide a more comprehensive report with additional data tables
showing perquisites and fringe benefits for the following
executives:
-
Chief Executive Officers (CEOs)
-
Chief Financial Officers (CFOs)
-
Senior Vice Presidents (SVPs)
-
Vice Presidents (VPs)
Availability of Comprehensive Report as Downloadable PDF
Data Source: Culpepper Pay Practices and Benefits
Survey of 80 organizations.
Survey Dates: January – March 2008
Breakdown by Sector:
Technology 74%, Life Science 14%, Healthcare Services 5%, Other
7%
Breakdown by Company Size:
Up to 100 Employees 41%, 101 to 1,000 Employees 33%, Over 1,000
Employees: 26%
Breakdown by Country:
United States 94%, Canada 4%, Other 2%
