What exec benefits are due to be cut?
A new rule could make things complicated if you offer traditional perks to top execs.
But many companies have found a simple way to deal with the latest scrutiny into execs’ salaries.
The Securities and Exchange Commission requires companies to divulge any executive benefits over $10,000 in value. So many companies are cutting back (or completely eliminating) many of the fringe benefits normally offered to top officers.
Why? It’s easier to get rid of these perks than to explain why they’re needed.
Financial-planning services and country club dues topped the list of fringe benefits that are being factored out of CEO compensation packages.
According to research from Equilar, 62% of Fortune 100 companies disclosed financial-planning benefits for chief executives last year — that’s down from 74% in 2006.
And the companies that continued to pay made substantial cuts. The median for financial planning benefits dropped 9.2% last year to $15,575.
While not as drastic, 26.3% of companies said they paid for golf club memberships last year, compared to 28% in 2006.
But now companies are paying way less for the CEO’s time on the course. The median value of club membership dues was $3,996 last year, dropping 64% from $11,070 in 2006.
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