by Annette Leckie and Donald Kalfen, Meridian Compensation Partners, LLC
Why do companies provide supplemental benefits and perquisites to executives? If you look at proxies, you’ll find reasons such as:
- To attract and retain the best talent;
- To be competitive;
- To bring on a mid-career hire;
- To make up for what a new recruit has left behind;
- For time efficiency or convenience;
- For security reasons; and
- To allow executives to remain focused on their job without distraction.
While these reasons may be true, the real reason that many companies have provided supplemental benefits, and especially perquisites, has been to confer status and recognition. Most executives can afford to pay for their own financial planning, car, and even private flights, as well as fund their own retirement, often many times over. These special benefits and perquisites, however, send a message to both the executive and others that they have achieved the pinnacle level of success to which many aspire, and few reach. They recognize past hard work, strong performance, and contribution.
Read the full article: Special Benefits and Perquisites - The New Paradigm
About Meridian Compensation Partners, LLC
Meridian Compensation Partners, LLC is an independent executive compensation consulting firm wholly owned and operated by its partners. Founded in 2010 by former principals of Hewitt Associates, Meridian is one of the largest independent consultancies providing trusted counsel to Boards and senior management at preeminent organizations in the U.S. and Canada. We have the talent and depth to provide our clients with a full range of executive compensation and corporate governance advisory services, with individualized attention for each and every client. www.meridiancp.com
topic tags: board of directors, compensation committee, corporate governance