Banker's perks just get better

Bonuses may be under review, but gifts just keep coming

By Kim Peterson Oct 20, 2009 11:09AM
Escape the rat race © Ross Anania/PhotographerThe salary of banking executives is a sore point with, well, everyone, but the perks are just getting better.

Financial firms that received taxpayer bailout money boosted their executive perks about 4% on average last year, the Washington Post reports. Bosses that didn't quite get the bonus or salary they wanted had their ruffled feathers smoothed over with a nice country club membership.


Ken Lewis of Bank of America (BAC) and Jeffrey Peek of CIT Group (CIT), for example, each got an extra $100,000 in personal jet use over the year. 


And Comerica (CMA) chief Ralph Babb Jr. got a slick new country club membership that would normally have cost him $200,000.


The chief of GMAC Financial Services got a $2.5 million check to help him pay his personal taxes. That practice is going to stop, however. In June, the Treasury Department banned bailed-out companies from giving their executives tax money.


About half the banks increased their perks to top executives, the Post reports.


American Express (AXP) spent a nice chunk of money on its chief executive's personal life. It paid $415,000 for the chief's personal travel on the company jet, $201,000 for his home security system and $46,000 for security during personal trips.


Does the CEO of American Express really need a bodyguard when he vacations? The company apparently thinks so.


Many of these companies are backing off of the corporate perks now. GMAC doesn't use corporate aircraft at all now, the Post reports. SunTrust Banks (STI) has stopped paying country club memberships, but it has increased salaries to make up the difference.


And Bank of America won't let it's top executives take the company jet for personal travel any more. Guess they'll have to fly commercial when they want to frolic in the south of France. The horror!
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
278
278 rated 2
474
474 rated 3
641
641 rated 4
639
639 rated 5
663
663 rated 6
640
640 rated 7
499
499 rated 8
284
284 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.