Executives’ use of corporate jets for personal use on the rise: report

business leader According to a report by executive intelligence firm Equilar, more and more people are using corporate jets for personal use.

In an Equilar report first published in the summer, Corporate benefits We surveyed chief executive officers (CEOs) and chief financial officers (CFOs) by analyzing proxy statements filed with regulators by the 500 largest publicly traded companies in the United States by revenue. Common benefits available include use of a company plane, company car, driver, and security services.

Regarding aircraft perks offered to executives, the report states that the median value of those perks will rise to $130.1 million for CEOs and $23.3 million for CFOs in 2022, with $30.1 million and $700,000, respectively, starting in 2021. It was pointed out that there was an increase.

These numbers were approximately $102 million for CEOs and $16 million for CFOs in the two years before the pandemic, but $80.1 million for CEOs and $22.1 million for CFOs in 2020 due to the pandemic. decreased to

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“The actual value of the perks given to CEOs has increased by about 30%, with some jumps,” Amit Batish, Equilar's senior director of content and communications, told FOX Business. “I think there was a noticeable increase when the pandemic started in 2020, but there is a fairly small increase from 2020 to 2022.”

“A lot of that can obviously be attributed to rising fuel costs, supply chain demands, etc… We’re seeing a lot of CEOs getting these perks not only from a travel standpoint but also for safety purposes. You've seen it. That's often disclosed in these companies,” he added.

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Equilar research shows that both CEOs and CFOs are increasingly taking advantage of corporate jet perks. (Photographer: Paul Taggart/Bloomberg via Getty Images / Getty Images)

A report from Equilar found that the following two CEOs take advantage of corporate jet perks the most: meta mark zuckerberg In Mr. Zuckerberg's case, his use of the company jet for personal use was related to a $24.8 million security program, which Meta said in its proxy filing, “to address security concerns. It was approved.” to specific threats to their safety that arise directly as a result of Mr. Zuckerberg's position as our founder. ”

According to a study by Equilar, Facebook CEO Mark Zuckerberg was the CEO who took advantage of corporate jet perks the most. (Reuters/Stephen Lamb/Reuters Photo)

According to research from Equilar, the number of CFOs taking advantage of corporate jet benefits increased from 54 CFOs in 2018 to 76 CFOs in 2022.

“In terms of other executives, the CFO is one of the roles that has been given these perks in recent years,” Batisch said. “They're slowly starting to give more perks to CFOs, although obviously not to the same degree as CEOs. I think the best perks for 2022 are:” Walmart CFO John Rainey This person received $424,200. ”

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Corporate jet perks are a notable perk for senior executives at large companies, but they make up a relatively small portion of an executive's total compensation, Batish explained.

“On the surface, I think there's a lot of scrutiny, but when you think about CEO pay and how much these people tend to make, it's just a small piece of the pie,” Batisch said. explained. “If you look at some of the same companies, the median total compensation is about $14 million, and the aviation perks are about $130,000. So this is really a small piece of the puzzle, but It often provokes anger.”