CEO pay may be stalled, but the perks aren't
Despite smaller raises for many top executives, lavish extras like corporate jets are on the rise.
Call it payment by Gulfstream.
While the median pay of the top 100 highest-paid American chief executives barely budged last year, spending on their overall "perks packages" saw a jump of almost 19%, according to The New York Times, citing a study from executive compensation data firm Equilar.
What's in a perks package? It contains goodies like travel via a $65 million Gulfstream jet, as well as benefits such as pensions and life insurance policies.
For the executives examined by The Times, which looked at the CEOs of companies with revenue of more than $5 billion, the typical 2012 perks package was worth $320,635.
But don't shed any tears for the CEOs' stalled take-home: While total pay among the 100 executive rose only 2.8%, the median pay was a whopping $14 million.
One recent example of a top executive who saw his pay marked down, yet was granted generous perks, is J.C. Penney (JCP) Chief Executive Ron Johnson.
His total compensation took a huge hit -- a reduction of more than $50 million, as reported by MSN moneyNOW on Wednesday -- yet he was awarded $344,000 for personal use of the company's private jet.
Cash compensation is also seeing a return in popularity, with overall cash payments rising 19.7% to $5.7 million, The Times notes.
So, who received the most generous pay packages last year? Many of the most lavishly rewarded CEOs head companies with well known brand names, such as Starbucks (SBUX) and Walt Disney (DIS), according to the report. All of the executives in the top 10 each earned more than $25 million.
The highest paid leader is Oracle (ORCL) CEO Larry Ellison, who earned a total pay package of $96.2 million last year (yes, you're reading that number correctly).
Almost all of the compensation was in stock, and it represented $20 million more than his 2011 earnings. It also came as Oracle's stock plunged 22% in its fiscal 2012, The Times notes.
Ellison's perks included $1.5 million for a security retinue.
"He doesn’t care what shareholders think,” compensation consultant Alan Johnson told the newspaper. "He’s one of the richest guys in the world, and he has the company pay for his bodyguards. I don’t think he's going to change."
While travel on private jet was one of the more popular perks, some CEOs gained more unusual compensation. Wynn Resorts (WYNN) CEO Steve Wynn racked up costs of $451,574 last year for a villa in Las Vegas, for example.
But Wynn wasn't shy when it came to private travel, either. He booked almost $1.2 million in personal trips on the company's jet, according to a regulatory filing. And in December, The Times notes, Wynn Resorts took delivery of a $65 million Gulfstream, the better to carry its CEO between New York -- where he has a $70 million penthouse -- and Las Vegas.
This is what people should be outraged about instead of some poor guy who needs
food stamps to survive.
I guess the increase in perks is intended to be some kind of safety net for those poor CEO's who got pay cuts. In our case, our poor poor CEO of the local Fortune 500 company in town (who shall go nameless but whose stock market initials are GLW) has to somehow get by on 16million a year!! Now come on...what is this world coming to when a swell guy like him has to get by on 16MM a year? That is hard work; all that sitting around in a suit looking pretty all day long, geez!!!
Whoever you wrote this comment "SOCIALIST B.S. GOING STRONG.................MENTAL " is a fool do not know anything about even the company. You should know all these CEO run publicly traded company, it is not their paternal property, it is stock holder's property. They are crooked thief. These SOB CEO’s should go to hell in one day. This great country is ruined because of these fools greedy CEOs, they are not even American, they do not have any national feelings, nothing! In other word they are not even human! Period.
Two weeks ago, MSNBC had an article here saying CEO pay was up 8%. Which do I believe?
They do pay taxes on the perks or do they?? Boa had aircraft, yachts, ball game suites, etc
and never paid taxes for personal use. All to benefit shareholder value! sure.
all ceo pay should be capped and linked to the average wage and numbers of employees
that way the ceo would want to hire and pay employees a good wage
if there company's average waged is at minimum waged so are ceo checks
let the accounts decide ceo wage by using a power of 1-5
such as a company has 1 to 5 workers boss gets 2x average wage
6 to 25 boss gets 3x average wage 26 to 125 boss gets 4x average wage and so on
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