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CEO pay packages include perks such as access to the corporate jet, home security, and financial planning advice.
CEO perks are a magnet for shareholder criticism, but some extras are hard for execs to relinquish. Last year, tech CEOs enjoyed a wide range of perks, from corporate aircraft and auto usage to home security, club memberships and financial planning services. Find out which tech CEOs indulged the most.
CEO, president and chairman, Amazon.com
Jeff Bezos’ sole perk is a pricey one. Amazon pays to keep Jeff Bezos safe, and the company’s security tab hit $1.6 million last year. The company justifies the security expenses in part because of Bezos’ low compensation (besides the $1.6 million security perk, Bezos’ only pay in 2013 was his $81,840 salary).
Oracle foots the bill for securing Larry Ellison’s residence in 2013, as the company has for several years. The $1.5 million residential security perk represents less than 2% of Ellison’s total pay package -- which was valued at $78.4 million last year. The remainder of Ellison’s perks consists of $5,134 in company contributions to his 401(k) plan; flexible benefit credits in the amount of $6,122; and $2,999 for legal services related to Ellison’s personal political campaign contributions.
CEO and chairman, Salesforce.com
Marc Benioff ranks among the top-paid tech CEOs, pulling in a compensation package valued at $22.1 million last year. His pay included $934,829 in perks. Roughly two-thirds of that amount -- $654,829 -- was for costs related to Benioff’s personal and residential security. Salesforce.com also paid $280,000 in filing fees to the government on behalf of Benioff, whose exercise of stock options in late 2012 required him to make a filing under the Hart-Scott-Rodino Antitrust Improvement Act (HSR Act).
CEO and chairman, Verizon
Five percent of Lowell McAdam’s $15.8 million pay package went to perks. The Verizon CEO’s compensation extras, totaling $780,874, were split among a number of expenses: $120,304 for personal use of company aircraft; $4,293 for his personal use of a company car; $153,741 for home security expenses; $19,050 for company contributions to a qualified savings plan; $315,233 for company contributions to a nonqualified deferral plan; and $168,253 for company contributions to a life insurance benefit.
CEO, president and chairman, IBM
The value of Virgina Rometty’s executive perks last year was $761,808, which is roughly 5% of her $14 million pay package. IBM itemized some of the perks: $151,933 for personal travel on company aircraft, $541,500 for company contributions to defined contribution plans, and $18,878 for tax reimbursements. Other perquisites Rometty received in 2013 (but weren’t itemized) included: personal financial planning, personal use of company autos, personal security, annual executive physical, and family attendance at company-related events.
Former CEO, Qualcomm
Paul Jacobs, who stepped down as Qualcomm CEO at the end of 2013, received $760,532 in compensation extras during his final year as chief exec. (His total pay was valued at $20.4 million). Among the perks Qualcomm provided are: $124,800 to match charitable contributions; $45,000 for payment on Jacobs’ behalf of HSR Act fees; $451,511 for nonqualified deferred compensation plan match; $9,696 for life insurance premiums; $6,525 in company matching 401k contributions; and $123,000 for additional but undefined “perquisites and other personal benefits.”
Facebook spent $650,164 on chartered aircraft for CEO Mark Zuckerberg, as part of his overall security program. That’s essentially Zuckerberg’s entire 2013 compensation, which also included a $1 salary and $3,000 for undisclosed extras. It’s also half what it was a year ago, when Zuckerberg received $1.2 million in airline perks.
CEO, president and chairman, AT&T
The value of Randall Stephenson’s perks fell 35% in 2013, yet he still managed to rack up pay extras worth $522,203. Here’s a sampling of his personal benefits: financial counseling, including tax preparation and estate planning ($24,000); auto benefits ($27,194); supplemental health insurance premiums ($15,528); club memberships ($2,776); communications ($20,960); and home security ($27,025). AT&T also paid premiums on supplemental life insurance ($221,521) for Stephenson, as well as made matching 401(k) contributions ($175,902). One perk that’s not on Stephenson’s list anymore: jet access. In 2013, Stephenson began reimbursing AT&T for his personal use of company aircraft. A year earlier, his perks included $276,391 for aircraft usage.
CEO and president, CSC
Another high flyer, Michael Lawrie accrued $237,469 for personal use of company aircraft. CSC also picked up a $50,000 tab for legal expenses related to Lawrie’s employment agreement. The remainder of Lawrie’s perks consists of $15,096 in matching contributions to his 401(k) plan and $1,524 for life insurance premiums, bringing the total value of his compensation extras to $442,921.
CEO and president, Harris
The priciest perk William Brown received last year was $239,258 for relocation expenses. Teleco equipment provider Harris also reimbursed Brown $53,911 for tax payments and paid $35,670 for his personal use of company-owned aircraft. In addition, Brown received: $71,833 for dividend equivalents on vested stock awards, $35,307 for retirement plan-related contributions, and $4,383 for life insurance premiums. Taken together, Brown’s perks amounted to $440,362, which is roughly 7% of his total compensation (valued at $6.4 million).
CEO and president, Sprint
In 2013, Sprint paid $226,794 in legal fees related to the negotiation of CEO Dan Hesse's employment contract. (The same year Hesse saw his compensation more than quadruple to $49.1 million, up from $11.1 million in 2012.) Sprint also paid $129,911 for company contributions to Hesse’s 401(k) and deferred compensation plans; $6,686 for his personal use of corporate aircraft; and $8,687 for security services for Hesse's residence. Combined, Hesse received perks worth $372,078.
Mike Gregoire took over as CA’s CEO just a few months before the company’s fiscal year ended March 31, 2013. As part of his $5.8 million compensation, he received perks valued at $342,151. Specifically, his pay extras included $159,625 for relocation benefits, $177,557 for company aircraft use, $3,106 for use of a company car, and $1,863 for financial planning.
CEO and chairman, EMC
Last year Joe Tucci’s total pay was valued at $12.6 million, a decline of 24% from the $16.6 million he received a year earlier. But his perks increased in value to $309,079 (up from $116,545 in 2012). Among his compensation extras were: $106,121 for air travel, $14,756 for tax and financial planning, $3,594 for the cost of an annual executive physical, and $3,000 for matching 401(k) contributions. Tucci also received a “dividend equivalent” of $181,608, which represents the value of dividend equivalents accrued on his outstanding equity awards.
CEO and chairman, Motorola Solutions
The bulk of Greg Brown’s perks were for personal use of company aircraft, which added up to $273,734. He received other perquisites (but Motorola didn’t break out the costs) including: security system installation and monitoring, financial planning, guest attendance at company events, 401(k) plan match, and executive physical. Taken together, Brown’s perks amounted to $306,530, which is less than 3% of his total compensation (valued at $12.6 million).
CEO and president, HP
As part of her $17.6 million pay package last year, Meg Whitman received perks valued at $275,334. The bulk of that was for personal use of company aircraft, which amounted to $254,162. HP also provided $18,000 for financial counseling for Whitman, $1,769 for home security services and systems, and $1,403 in miscellaneous perks.