+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

CFO perks leveled off in 2014, but CEOs received big increases

Nov 4, 2015, 22:47 IST

Business Insider

The number of perks being given to chief finance officers appears to have reached a temporary equilibrium, while CEOs continue to receive an increasing number of added benefits.

Advertisement

A new study from Compensation Advisory Partners found that Fortune 500 companies provided their CFOs with $24,900 in perks for 2014.

That number is only slightly up from $24,000 in 2013 and $21,400 in 2012. In 2011, CFO perks hit a high of $36,200.

The most common perks given to both CFOs and CEOs include personal use of aircraft, automobile allowance, personal security, and financial planning.

The study found that while the amount paid in perks did not increase, the percentage of CFOs receiving perks jumped from 76% in 2013 to 81% in 2014.

Advertisement

CAP believes companies will continue to closely align executive compensation with shareholder interests. Publicly traded companies are expected to "limit non-performance-based compensation," according to the report.

"Any potential perceived misuse of executive perks will continue to raise the ire of shareholders and proxy advisory firms and provide for headline news," the study adds.

While CFOs maintained a steady level of perks, CEOs received a 15% increase in perks to an average of $143,000, nearly 500% higher than the average CFO. At the time of the study, 83% of CEOs received perks at Fortune 500 companies.

CEOs continue to receive more perks largely due to their ability to negotiate such packages.

"It's not like directors haven't thought about getting rid of perks," Andrew Goldstein, a corporate compensation adviser at Towers Watson, explained to USA Today. "They're still a sticking point for a lot of executives. They feel it's part of their compensation package. And it's a stature thing."

Advertisement

NOW WATCH: There's a hidden wire stretched above American cities - and few people know what it's for

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article