October 6, 2020
18th Annual “Executive Compensation” Survey
– Liz Dunshee
The annual “Corporate Governance & Executive Compensation Survey” of the 100 largest companies from Shearman & Sterling is always a “hot ticket” item, perhaps because it’s one of the oldest. With perquisites getting more attention lately – due to the impact of the pandemic and recent SEC Enforcement Actions – I was interested in some of the takeaways on that topic. Page 78 gives this info about aircraft use:
– 82 companies allow personal use of corporate aircraft – 46 offer this perk to all NEOs, 21 offer it to only the CEO, 5 offer it to the CEO & CFO, and 10 offer it to the CEO, CFO and other NEO
– 30 require execs to reimburse the company for all or a portion of their personal aircraft usage
– In many instances, personal usage is limited to availability and requires approval by the CEO
– 7 companies disclose that they provide tax gross-ups on some or all perks to execs