Should American CEOs have more Benefits?
American CEO's don't have the perks they used to have. However, some CEOs still get crazy company benefits.
Vail Resorts Inc. spent as much as $11,220 on ski lessons and lodging at company-owned facilities for Chief Executive Officer Rob Katz, and fashion retailer Nordstrom Inc. contributed $33,246 in merchandise discounts for co-President Blake Nordstrom. Domino’s Pizza Inc. awarded CEO Patrick Doyle $11.1 million last year, topping it off with $224 for pizza, according to a Bloomberg Pay Index analysis of proxy filings.
Stanley Bergman of Henry Schein Inc. cost his company $196k for personal clerical and help and administrative tasks. Joe Berchtold of Live Nation Entertainment spent $34k on sporting tickets. Steve Wynn of Wynn Resorts received over $33k in merchandise discounts. Some other weird benefits include $6k for 'vacation travel allowance' or $4.5k for a retirement gift.
It's interesting to think, why do these CEOs need to have the company pay for these perks. You would think the CEOs of these firms make enough money to afford this on their own. The argument lays that certain perks give executives a peace of mind and the ability to focus on the company rather than on things that pop up in their lives.
Those costs are scrutinized by shareholders, who have become more attentive to excessive spending since investor votes on compensation for top managers, known as “say on pay,” were introduced in 2011. As a result, many companies have dialed back on perks for corporate executives.Country-club memberships, an oft-derided perk, are still common in the oil-and-gas industry. They can help executives build ties in the community and, perhaps, encourage them to move to rural Texas or Oklahoma, far from urban centers. Some companies consider club memberships essential tools to help executives keep clients and woo new ones, yet still disclose them as perquisites.
The cost of these perks is that many benefits are considered taxable income. For example, the SEC rebuked Facebook for not disclosing Mark Zuckerberg's security program. Facebook spent ~5 million on keeping him safe, yet, it was still considered taxable income.
Perks sometimes are lumped in with other items such as accrued dividends that can’t be disclosed any other way because of SEC reporting rules. Among the country’s 200 top-paid executives, Gamco Investors Inc.’s Mario Gabelli had the highest aggregate “other compensation” at $76 million, split between incentive-management fees and other variable pay. Viacom Inc. disclosed $58.4 million for ex-CEO Philippe Dauman, mostly consisting of a separation payment following his departure.
So monkeys, what do you think of this? Should CEO perks keep decreasing? Do you think that these CEO perks actually help the CEO keep a "peace of mind"? Is the money spent on these CEOs actually useful? Please discuss.
Gonna go a little socialist here, think that the ceo to average worker pay ratio needs to come back in line. Currently over 225:1, perhaps move that down to 135:1.
Does anyone really give a shit if the CEO of Domino's gets $200 worth of free pizza?
I really doubt anyone cares much about pizza, but $11k for ski lessons or $196k personal clerical help is a bit over the top
Over the top according to whom?
There is a decent chance that the CEO of Vail Resorts was chosen because he's a good CEO, not a good skier, and it would be a bit embarrassing for him to entertain people at his resort if he can't ski.
Also, if he's making 10+ million annual, what does 11k in one year matter whatsoever?
Yeah this is funny. Bartenders in the US have received more than $200 in their product, easily.
He was probably offered more than $200 and replied "I mean, we're better than we used to be, but it's like like we're good. I'll pass."
Edit: Also, does it clarify who that pizza was even for? He did "buy" pizza for a top performing store? Or perhaps for an office party? It might not even be for him.
More concerning is that he only ate $224 worth of their product.
If the shareholders are willing to give the CEO these perks, then what the fuck does it matter? It's their company... For a finance forum, it's astounding how little the people on here understand about corporate governance. If the shareholders weren't willing to give the CEO these perks, then they would have fired him.
Sint nemo eveniet ab nemo qui. Illo quae alias officia minus aperiam delectus.
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