Executive compensation study shows fewer incentives, perks

Compensations packages for American executives are being dissected under a microscope these days, and companies are finding it more difficult to offer incentives and perks to their companies’ leaders without facing backlash from the public. That’s according to “The Executive Compensation 2011/2012” survey by compensation and benefits survey data provider Compdata Surveys, which has been conducting it since 1988. According to the survey, the number of companies offering perks to CEOs has fallen from 89.8% in 2009 to 61.5% in 2011. The survey analyzes national and regional data, including base pay and total cash compensation, for more than 65 executive and senior management positions. Information was collected from more than 4,500 organizations across the country, reporting on over 22,000 executives. In 2009, 28.3% of companies reported offering company cars to their CEOs. That dropped to 23.5% in 2011. Offering annual physical exams fell from 21.4% to 16.9% over the last two years. Incentives have also taken a big hit. Just 10.4% of employers in the South Central region of the country, including Louisiana, offer long-term incentives to CEOs—down from 47.2% reported in 2009. Bonuses have seen a similar fate, with some of the largest drops seen in the hospitality, insurance and utilities industries. Sixty-five percent of CEOs in hospitality received bonuses in 2009, decreasing to 40% in 2011. CEOs in insurance receive bonuses at a rate of 53.2%, a drop from 62.4% reported two years ago. Utilities bonuses fell from 20.9% in 2009 to 12.5% in 2011. Compdata Surveys doesn’t give away its survey results, but if you’re interested in purchasing the full report you can find it here.