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Here’s the latest survey results on perks practices that are quite lengthy (compare to the same survey a decade ago) – and come with a big fat disclaimer that they do not necessarily reflect what the actual law is (and don’t forget to take our new “Quick Survey on Auditing Standard #18: D&O Questionnaires“):

A. Company Airplane Use

1. Spousal/family member tag-along on corporate plane where executive is flying for business reasons (assume no incremental cost of tag-along):

– Definitely a perk – 52%
– Leaning toward a perk – 20%
– Leaning toward not a perk -14%
– Definitely not a perk – 15%

2. Spousal/family member tag-along on corporate plane where executive is flying for personal reasons (assume no incremental cost of tag-along):

– Definitely a perk – 87%
– Leaning toward a perk – 5%
– Leaning toward not a perk – 2%
– Definitely not a perk – 6%

3. Executive use of corporate plane for outside board meetings (i.e., director of another company):

– Definitely a perk – 60%
– Leaning toward a perk – 20%
– Leaning toward not a perk – 14%
– Definitely not a perk – 7%

4. Outside director’s use of corporate plane to attend company’s board meeting (i.e., picking up directors for meetings):

– Definitely a perk – 7%
– Leaning toward a perk – 5%
– Leaning toward not a perk – 25%
– Definitely not a perk – 64%

5. Executive use of corporate plane to attend a meeting of the board/trustees of a charitable organization:

– Definitely a perk – 59%
– Leaning toward a perk – 22%
– Leaning toward not a perk – 16%
– Definitely not a perk – 3%

B. Other Spousal/Family Member Issues

1. Travel costs associated with spouse attendance with directors at annual board retreat/meeting where all spouses are invited:

– Definitely a perk – 43%
– Leaning toward a perk – 24%
– Leaning toward not a perk – 21%
– Definitely not a perk – 12%

2. Travel costs associated with spouse attendance with directors at a board meeting where spouses are welcome, but not formally invited, and only a few spouses attend:

– Definitely a perk – 70%
– Leaning toward a perk – 21%
– Leaning toward not a perk – 6%
– Definitely not a perk – 4%

3. Spousal golf and other extra services, such as day travel or spa services, for when the board is in a formal meeting:

– Definitely a perk – 85%
– Leaning toward a perk – 9%
– Leaning toward not a perk – 4%
– Definitely not a perk – 2%

C. Mixed Business & Personal Use

1. Country club membership paid by company that is not used exclusively for business purposes, if the membership is used a few times by the executive or a family member for personal reasons:

– Entire amount of country club expenses is a perk – 22%
– Allocate incremental cost of those few personal uses as a perk – 52%
– Allocate all expenses, including a portion of the membership cost on some basis, as a perk – 24%
– Not a perk – 3%

2. Luxury box paid by company that is not used exclusively for business purposes, if the box is used a few times by the executive or a family member for personal reasons:

– Entire amount of ownership expenses is a perk – 6%
– Allocate incremental cost as a perk (eg. cost of refreshments) – 50%
– Allocate all expenses, including a portion of the membership cost on some basis, as a perk (eg. by dividing number of events box is paid for in order to allocate the cost on a per event basis) – 36%
– Not a perk – 7%

3. Membership in airline club paid by company that provide facilities at airports, if the club is also used by executive during personal travel:

– Entire amount of club expenses is a perk – 11%
– Allocate incremental cost as a perk (eg. cost of refreshments) – 40%
– Allocate all expenses, including a portion of the membership cost on some basis, as a perk (eg. valuation based on percentage of personal use) – 17%
– Not a perk – 32%

4. Relocation expenses for existing executive that the company has required to relocate:

– Definitely a perk – 25%
– Leaning toward a perk – 11%
– Leaning toward not a perk – 9%
– Definitely not a perk – 55%

5. Relocation expenses for newly hired executive, extended to induce the executive to accept an employment offer:

– Definitely a perk – 35%
– Leaning toward a perk – 29%
– Leaning toward not a perk – 24%
– Definitely not a perk – 12%

6. CEO’s assistant (whose compensation is paid for entirely by company) who spends 60% of his time taking care of personal tasks (such as maintaining the CEO’s personal calendar, paying personal bills, etc.) and the other 40% is work-related:

– Definitely a perk – 35%
– Leaning toward a perk – 29%
– Leaning toward not a perk – 24%
– Definitely not a perk – 12%

7. Would your answers change to the above questions if the executive paid the full incremental cost to the company?

– Yes to most – 60%
– Yes to a few – 19%
– Maybe for a few – 10%
– No – 11%

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Webcast: “Key Steps to an Effective Compensation Committee”

Tune in tomorrow for the CompensationStandards.com webcast – “Key Steps to an Effective Compensation Committee” – to hear Pay Governance’s Diane Lerner, Shearman & Sterling’s Doreen Lilienfeld & Global Governance Consulting’s Susan Wolf untangle the complex issues that compensation committees face in exercising their fiduciary duties against a backdrop of increased shareholder activism, potent proxy advisor policies, an active plaintiff’s bar and heightened media scrutiny.

– Broc Romanek