By Kathleen Caulderwood - Despite pared-down perks for corporate America, executives are getting paid more than ever, and still get to travel in style.
“Companies are really digging in on identifying what areas it makes sense to focus their benefits programs,” said Robert Newbury, director at pay consulting firm Towers Watson, to Reuters.
“You will see companies spend less on areas that raise red flags with investors,” he said.
At the Chipotle Mexican Grill Inc (NYSE:CMG) investor meeting last week 77 percent of shareholder votes opposed the compensation terms and Abercrombie & Fitch Co. announced earlier this month that it lowered CEO compensation by 72 percent, according to a Bloomberg report.
Even Gregg Steinhafel, former Chief Executive Officer at Target Corporation (NYSE:TGT) saw his pay cut from $20.6 million in 2012 to $13 million last year, after investors voiced concern about high pay levels.
Amid criticism, companies have started paying their executives with stock options, rather than cash bonuses. But in many cases this has raised their overall compensation more than ever, buoyed by a strong market.
A report from the Associated Press shows that average American CEO pay topped $10 million last year, passing eight figures for the first time ever. In 2013, CEOs made about 257 times the average worker’s salary, up from just 181 times in 2009. The average head of a large company takes home $10.5 million, up 8.8 percent from the $9.6 million average a year earlier.
Meanwhile, even more companies are giving their execs travel perks, allowing them to use corporate jets for personal trips, which can be worth almost as much as their annual salary, according to The Wall Street Journal. Last year CEOs at 142 companies did this, up from 122 the year earlier.
One healthcare executive took $677,113 worth of flights last year, which is about half his salary. The chief executive at Dollar General Corporation (NYSE:DG) used the company’s corporate jet to fly from Tennessee to California regularly to visit his second home, in trips adding up to a total value of $481,658 last year.
About 60 percent of companies that filed disclosures in 2013 raise spending on “other compensation,” which can include everything from company aircraft to more mundane tax planning assistance, according to Reuters.