Tag: Perks

Did Corporate Perks Go Away?

Remember back about a month ago when bashing corporate CEOs was all the rage?  But that is silent now, the populist backlash has been silenced by a flu bug and a political deserter.

You do realize that the problem has not gone away?

U.S. companies remain generous with the perks they give to CEOs, including some that are unfathomable to the average American worker: chauffeured cars, bodyguards, club memberships and free travel in company jets.

The median value of these and similar perks rose nearly 7 percent in 2008, according to an Associated Press analysis of regulatory filings from 309 companies in the Standard & Poor’s 500. The increase came even as overall CEO compensation fell 7 percent to $7.6 million.

Perks rose despite a public backlash against such benefits, which many investors and lawmakers deem excessive. They argue well-paid executives should cover the costs of life insurance, charitable donations and financial planning themselves, especially as companies struggle with falling profits, slumping stock prices and massive job cuts.

But plenty of companies are keeping the spigots open. Occidental Petroleum CEO Ray Irani, for example, received $400,000 worth of financial planning, part of a $30 million pay package in 2008. To put it another way, that $400,000 in financial planning is more than the total annual household income of the vast majority of Americans. Occidental spokesman Richard Kline said the comprehensive financial planning helps Irani to “keep his complete attention on the company’s business.”

The median value of perks — which is the midpoint at which half of the executives received more and half less — was $170,501 in 2008, up from $159,586 the year before. Only three CEOs in the AP survey received no perks in 2008.

And perks made up a bigger percentage of total compensation, rising to 2.25 percent in 2008, up slightly from 1.95 percent, the AP’s analysis found.

So you see the perks are still being paid to the CEOs, just now it is done more quiet than before and they try to get it in under the populist radar.  THe workers are losing their jobs at an alarming rate and the corporate leaders are getting their perks at an even more alarming rate.

Taxpayers need to pay attention, their money is being misused and they are getting nothing out of their generosity.  Let the CEOs eat cake and the real people that should be benefiting from the government’s philanthropy.

Lobbyists Win Again

Once again the Congress has spent time massaging the genitalia of the lobbyist–why not most of the lobbyist were in Congress–just away to pave the road when the present Congress decides to get involved.  The WSJ reported yesterday.

Congress has relaxed rules that would have required public disclosure of contributions and parties paid for by lobbyists, narrowing the scope of new ethics rules intended to draw back the veil on Washington’s influence game.

New guidance released by Congress late Wednesday exempts lobbyists from reporting their financing of an array of political and charitable contributions, events and parties at political conventions.

The capital’s lobbying community has been worried about the disclosure requirements because, for the first time, willful violations could carry up to a five-year jail term. Lobbyists are required to file reports by July 30. Now, they won’t have to disclose as much.

Under the new guidelines, “it’s hard to envision any event at the conventions that would trigger disclosure,” said Kenneth Gross, an attorney at Skadden, Arps, Slate, Meagher & Flom LLP who advises lobbyists on complying with ethics rules.

“This relieves lobbyists from tracking and reporting much information about attending or paying for events involving public officials, that would have been required before.”

So once again the Lobbyist win—Let the perks fly!