A news release fromEquilar, a Redwood Shores, California-based executive compensation research firm, said its study, 2007 CEO Benefits & Perquisites Report, was driven by new compensation disclosures mandated by the Securities and Exchange Commission (SEC) that were effective with the 2007 annual meeting season.
Equilar explained that its report is based on 2004, 2005, and 2006 data proxy filings by Fortune 100 companies. According to the news release, other findings included:
- In 2006, 80.2% of Fortune 100 companies reported values for accumulated pension benefits for their CEO with a median value of about $12.8 million.
- In 2006, 85.2% of Fortune 100 companies reported a nonqualified deferred compensation plan balance for their CEO with a median value of approximately $5.1 million.
- The new SEC disclosures tended to include values below the prior year’s median, forcing median values for many perquisites downward. Exceptions to this trend included financial planning assistance and the personal use of corporate aircraft.
- Aircraft – related perquisites were among the minority of executive perquisites to experience both an increase in value and prevalence from 2005 to 2006. In the most recent year, the median value of aircraft-related perquisites for Fortune 100 chief executives reached $121,676 – a 12.1% increase over the median of $108,579 reported in 2005. The prevalence of companies reporting the personal use of corporate aircraft by their CEO rose from 68.4% in 2005 to 78.5% in 2006.
- In 2006, 16.1% of Fortune 100 companies indicated that they would eliminate some executive perquisites in 2006 or by the start of 2007.Among the benefits being eliminated: a nnual club memberships, vehicles leases, event tickets, financial planning, paid parking, and tax reimbursements.
- From 2005 to 2006, the median value of flexible perquisite accounts for Fortune 100 CEOs declined by 9.1%, falling from $38,500 to $35,000.
- In 2006, Fortune 100 CEOs received a median of $17,156 in financial planning and other professional service perquisites, representing an increase of 16% over the 2005 median of $14,784. These values principally consist of the cost of personal financial planning, but may also include other services such as tax preparation and corporate financial planning.
Copies of the report are available by calling 1-877-441-6090 or at http://www.equilar.com/CEO_Benefits_Report_2007.html .