Apr 04 - Companies are reining in flashy perks like paying for CEO's mansions and club memberships, replacing them with boring extras like better insurance and financial planning. Bobbi Rebell reports.
The perks of the corporate boardroom are getting a little less perky. Forget bloated expense accounts and country club memberships- perks for today's top execs are getting heavy on the boring- think financial planning assistance and life insurance. Reuters' Ross Kerber: SOUNDBITE: ROSS KERBER, REUTERS CORRESPONDENT (ENGLISH) SAYING: "We looked through some filings and what we find is that in a lot of cases the big luxury perks are going away and what you are seeing is more spending and more let's call them more mundane areas like life insurance, security, financial planning assistance things like that; a lot of less use of the corporate jet." Casino mogul Steve Wynn is a prime example: SOUNDBITE: ROSS KERBER, REUTERS CORRESPONDENT (ENGLISH) SAYING: "Steve Wynn has recently started paying for a company owned villa that the company was taking care of previously." Taking care of, to the tune of $450-thousand a year. Instead the company nearly doubled Mr. Wynn's health insurance benefits. Total cost: $33,000 bucks last year. AT&T CEO Randall Stephenson saw his "other compensation" slashed by 35 percent- down to a mere half a million bucks. He now pays the company back for personal use of the company jet. AT&T has also stopped paying for fees for executives' country club memberships. In its place- perks like financial planning. The median value of financial and tax planning help for CEO's is on the rise. And getting to use the company's products- For example: Advanced Micro Devices execs get reimbursed for products that use their chips- including Sony PlayStation and Microsoft Xbox.