While many U.S. companies have scaled back flashy executive perks such as personal jet use, country club memberships, and luxury rentals, these shifts often follow shareholder pressure against soaring executive pay. For instance, in 2012, 36% of Fortune 500 CEOs had company aircraft for personal use, down from 53% in 2007, though the median value for this perk rose from $92,596 in 2007 to $125,473 in 2012, possibly due to higher fuel prices. Casino mogul Steve Wynn, for example, started covering the $450,000 annual cost of his Las Vegas luxury villa himself after years of his company, Wynn Resorts Ltd, doing so.
Despite these cutbacks, a robust "extras" package often accompanies C-suite positions. Many executives receive annual medical screenings, costing between $2,000 and $3,000. At State Street Corp., shareholders paid $2,522 for such appointments for its top five executives. The company justifies this by stating it covers preventive care for all employees. Furthermore, State Street CEO Jay Hooley received a car and driver worth $27,852, along with $9,336 for personal and home security, which are common benefits among major Wall Street firms that cite safety concerns. PerkinElmer has eliminated concierge health care benefits and "gross-up payments" for taxes on perks due to shareholder criticism, though it maintains other benefits to attract and retain senior executives.
Personal use of company aircraft remains a popular perk. EMC Corp.'s CEO, Joseph Tucci, received $113,545 in benefits, including private jet travel, financial planning services, and executive medical exams, in addition to his $16 million cash, stock, and incentives. Some firms limit private jet use to a maximum of $100,000, equivalent to about 20 hours or two cross-country trips. Boston Scientific Corp.'s CEO, Michael Mahoney, utilized $71,853 for personal aircraft use. While these perks may seem small compared to multi-million dollar compensation packages, they often highlight the disparity with average worker benefits, such as Dunkin' Brands Group executives receiving Red Sox tickets worth $2,160.
