CEO bonuses and incentives on the decline
It’s not just the rank-and-file workers who are seeing a decrease in popular benefits.
Last year, the number of firms that offered perks to CEOs dropped to 61.5%, compared to the 89.8% who did so in 2009.
That’s based on research from Compdata’s Executive Compensation 2011/2012 poll of 4,500 U.S. businesses.
Here’s a breakdown of the specific CEO benefits firms are scaling back on:
- 23.5% of firms offered their CEO a company car in 2011, compared to 28.3% in ’09.
- 21.2% of CEOs were offered voluntary deferred compensation programs last year, down from 24.4% in ’09, and
- 16.9% of companies offered CEOs annual physical exams in 2011, whereas 21.4% did so in 2009.
In terms of bonuses, the decreases varied by industry. Here are the three that saw the greatest drop:
- Hospitality: Less than half (40%) of the CEOs in the survey received bonuses last year, compared to 65% in ’09
- Insurance: 53.2% of received bonuses last year, down from 62.4% in 2009, and
- Utilities: 12.5% received bonuses in 2011, compared to 20.9% in ’09.
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