St. Louis Post-Dispatch: Some Companies Cutting Executive Perks
By: David Nicklaus
St. Louis Post-Dispatch
Among St. Louis firms, Olin and Spartech eliminated their executive perks at the beginning of last year. Express Scripts, Reinsurance Group of America, MEMC Electronic Materials and a few others already had no-perks policies.
Express Scripts makes its egalitarian attitude clear: Bosses don’t get any special benefits, not even reserved parking spaces. Their offices are the same size as others in the headquarters building near the University of Missouri St. Louis. They even pay higher health-insurance premiums than other employees.
Spartech used to give auto allowances of more than $10,000 to some executives. Olin provided company cars along with financial planning services to help executives manage their millions. As of last year, those goodies are gone.
Pay consultant Steven Hall says Olin and Spartech are part of a trend. “In the last few years, companies have been eliminating these kinds of benefits,” he said. “In some cases, the amounts are not meaningful at all, but companies are saying it’s a matter of principle.”
Hall, managing director of Steven Hall & Partners in New York, was speaking about the largest U.S. companies, which tend to be trendsetters in pay practices. St. Louis CEOs, especially at smaller companies, have been slower to give up their perks.