Scrutiny of executive pay has seen a steady rise over the past few years, due in part to stringent SEC disclosure regulations and the Frank-Dodd Act say on pay requirements. Executive perquisites play no small part in these examinations as many companies offer them as a way to entice and retain the strongest leaders. The Executive Compensation 2012/2013 survey results found supplemental life insurance continues to be the perquisite most commonly offered to CEOs at 43.3 percent.
Car allowances were offered to CEOs at 36 percent of companies surveyed, compared to voluntary deferred compensation at 31.2 percent. CEOs at 25.3 percent of companies surveyed were offered club memberships as a perquisite and 13.9 percent were offered supplemental medical coverage. Only 8.2 percent of companies responding report offering a spousal travel allowance to CEOs as a perquisite.
“Over the past few years, there has been a lot of debate on the cost of executive perks versus the overall value – real or perceived – they provide,” said Amy Kaminski, vice president for Compdata Surveys. “Most organizations offer perks to their leaders because they are effective at ensuring the company maintains the highest level of talent at the helm, although a few organizations have chosen to phase out some or all executive perquisite offerings.”
Although there has been a lot of debate regarding executive pay recently, many organizations are finding it necessary to grant pay increases to their top executives. As the economy continues to recover, executives are tasked with rebuilding their companies, often times with smaller workforces and significantly reduced budgets. Faced with these additional challenges, companies realize in order to keep the highest level of talent at the helm it becomes necessary to compensate their leaders at a more competitive level.
The recently released results report CEO average base rates stand at $413,300. The average base salary for Chief Medical Officer has seen an increase in the past couple years. In 2010, the average was $294,100. This year, that number was $310,500. The results also indicated 41 percent of participating organizations offer a voluntary deferred compensation program to the Chief Medical Officer.
About the Survey
Executive Compensation 2012/2013 analyzes national and regional data by base pay and total cash compensation for more than 65 executive and senior management positions. Information was collected from over 4,500 organizations across the country, reporting on more than 20,000 incumbents.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.