The Advisors' Blog

We’ve all heard the parable of the blind men & the elephant. Everyone is convinced they know The Truth based on their different perspectives. This Meridian memo reminded me that it’s kinda the same thing when it comes to perks. The memo points out that there are several lenses through which to consider this element of compensation:

– Companies: Value perks that make executives more productive, less distracted, healthier and/or safer. These are the predominant objectives for most Committees when adopting perquisites.

– Investors/Shareholders: Are generally not opposed to perquisites provided that they are not excessive, are within market norms and demonstrate a legitimate business purpose.

– Proxy Advisors: May view perquisites as a poor pay practice if they are “excessive.” Examples include tax gross-ups and “excessive” company plan and automobile use. Both ISS and Glass Lewis have published research on executive perquisites.

– Executives: May view perquisites as more valuable than a similar amount of cash because they facilitate material assistance in managing complex professional and personal responsibilities. Among the most common are financial planning assistance, company car, personal use of company plan and/or executive physicals.

The memo suggests key questions for comp committees to ask when considering perquisites with these perspectives in mind. It also covers two other elements of compensation that may be overlooked or misunderstood – retirement & severance benefits.

At our upcoming “Proxy Disclosure & 22nd Annual Executive Compensation Conferences,” we’ll be discussing a perk that’s been on everyone’s mind this year – executive security – as well as other key issues in structuring short-term and long-term incentives and in executive compensation disclosures. The Conferences are happening in Las Vegas on October 21st & 22nd – it’s not too late to register! You can do that by signing up online or by reaching out to our team at info@ccrcorp.com or 1.800.737.1271. Here’s the full agenda – full of practical insights to help you as you head into year-end and the 2026 proxy season.

– Liz Dunshee