In the wake of the new SEC disclosure rules which have thrust executive reward practices into the spotlight, a movement away from the use of executive perquisites has emerged in early proxy filings. In its March 2007 Newsletter, Equilar, Inc. offers an early glimpse of companies whose proxies disclose the elimination of all or some parts of their executive perk packages.
And no wonder. In a related article CEO Perks See the Light of Day in World Magazine, AP Business Writer Rachel Beck gives special mention to practices deserving of what she dubs The 'Shareholders Paid for What?' Award, including:
- Coca-Cola Enterprises Inc. paid out $50,000 to cover the legal costs that its top executive incurred in negotiating his employment agreement with the company.
- Anheuser-Busch Cos. Inc. Chief Executive got an allowance that paid for beer for personal use and entertaining.
- UST Inc., the holding company for International Wine & Spirits gave its CEO an annual wine allowance.
Beck also suggests a Road Less Traveled Award for Berkshire Hathaway, for its clear-cut explanations of executive pay for CEO Warren Buffett and others.
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