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The Corporate Executive, Vol. XXIII, No. 1
January-February 2009

Revisiting Perquisites

Recent economic and financial pressures are driving most companies to review every aspect of their budget—and layoffs and significant cutbacks are being experienced across the board. When a company is laying off a substantial portion of its work force or is cutting back on research and development, it becomes increasingly more difficult to justify the "need" for expensive perquisites as an element of compensation when fundamental business needs cannot be funded. These heightened cost concerns come at a time when perquisites are increasingly being cut back, and federal legislation and investment policies are targeting the use of aircraft by companies accepting bailout money. Given these fundamental shifts in attitude, this may be the year when many companies are compelled to "clean house" with respect to their perquisites.

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