If You Think CEOs’ Salaries Are Outrageous, Look at Their Perks
Hey, want to get really mad? CEOs of big companies make 6 percent more than they did a year ago, according to research by executive compensation data provider Equilar for the Associated Press. And as if that weren't enough, the value of their perks has increased 2 percent, to $161,337 annually, or roughly elevendy-bajillion times more money than you made this year in pure salary.
To get these figures, Equilar looked at CEO pay data for the 332 companies on the S&P 500 that had the same CEO for the past two years and had filed regulatory disclosures by April 30, 2012. So in other words, these were big companies, not your local mom and pop businesses. (Lest you be inclined to get peevish with the “CEO” of your local dry cleaners next time you’re picking up your work clothes.)
Among the perks they found:
- Wynn Resorts spent $910,345 maintaining a plane for CEO Stephen Wynn’s personal travel. It also spent $503,831 on a suite for him at their Las Vegas hotel.
- Andrea Jung is no longer CEO of Avon, but they’re still shelling out plenty of money in perks: her car service allowance this year was $95,577. The company also paid for her personal car insurance, which naturally makes you wonder why she needed so many car services.
- Chesapeake Energy CEO Aubrey McClendon got in trouble with shareholders this year for borrowing money from the companies they do business with. Hopefully, that won’t be a problem soon, since his company spent $250,000 on his personal financial planning.
As bad as all this seems, it’s less than CEOs used to get: Equilar’s study of CEO perks in 2010 found that top officers at Fortune 100 companies earned about $229,000 in extras — down from $356,000 in 2007.
(Photo Credit: 401k)