Although executive perquisites have stabilized significantly compared to 10 years ago, when enhanced proxy disclosure rules were put in place, some trends are visible in Ayco's
2021 survey of executive perks. Although perks make up only a small fraction (typically less than 1%) of total CEO pay, they attract an outsized level of company scrutiny and media attention. Still, certain perks seem to be consistently mentioned in company proxies. The Ayco survey included the following findings:
- Executive physicals are now very prevalent at 67% (up from 59% ten years ago).
- Financial counseling continues to be prevalent at 67%.
- Other popular executive perks were tax preparation (54%), executive benefits such as long-term disability or life insurance (30%), and personal use of company aircraft (41% for the CEO only, 18% for other executives).
- A recent Agenda article noted that personal corporate jet use remained surprisingly stable in 2021, as some companies reduced it considerably due to the pandemic while others increased it or introduced it for the first time.
- Education of executives regarding their benefits is more important than ever, but the vast majority of companies still use email (90%) and brochures (70%) while just over half use a third-party (such as Ayco or PwC) to assist.
- This year’s survey also included highlights on broad-based benefits, noting that there was an 11% jump in companies offering financial education to all employees, with 88% of those offering it as an employer-paid benefit.
- Overall, adoption of voluntary benefits has risen considerably in the last decade, especially benefits such as group legal plans and insurance.
