Network World: Protection is a pricey perk for top tech CEOs
By Ann Bednarz
June 26, 2013
At a time when executive perks in general are on the decline, CEO security is one that has staying power.
“We’re definitely seeing a removal of perks, particularly the perks that would be considered shareholder irritants, like excise tax gross-ups,” says Joe Sorrentino, managing director at Steven Hall & Partners, an executive compensation consulting firm in New York. “One perk that still has some staying power is corporate aircraft usage,” Sorrentino says.
Companies often justify letting the CEO use corporate aircraft for personal travel because of security concerns — the same reason they fund personal and residential security programs.
The security perk “is still pretty common for the very large, high-profile companies — defense companies, major consumer goods companies … financial services firms,” Sorrentino says. “We’re not seeing any increases in [security-related] perks. However for the big-name companies, it’s not surprising to see it. I don’t think it’s a majority, but it’s a healthy minority.”