Kansas City, Kan. – Executive compensation packages are being dissected under a microscope these days and companies are finding it more difficult to offer perquisites and incentives to their companies’ leaders, without facing backlash from the public. The Executive Compensation 2011/2012 survey results found the number of companies offering perquisites to CEOs has fallen from 89.8 percent in 2009 to 61.5 percent in 2011.
In 2009, 28.3 percent of companies reported offering company cars to their CEOs. This dropped to 23.5 percent in 2011. Offering annual physical exams fell from 21.4 percent to 16.9 percent over the last two years, compared to voluntary deferred compensation programs which were reported at 21.2 percent in 2011, down from 24.4 percent in 2009.
Incentives have also taken a hit, as 61.6 percent of companies in the West offered long-term incentives to CEOs in 2009, compared to just 19 percent reported in 2011. Organizations in the Southeast offer long-term incentives at a rate of 17.9 percent, dropping from 58.6 percent in 2009. Only 10.4 percent of employers in the South Central region of the country offer long-term incentives to CEOs, down from 47.2 percent reported in 2009.
Rewards 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 percent in 2011. CEOs in insurance receive bonuses at a rate of 53.2 percent, representing a drop from 62.4 percent reported two years ago. The rate at which bonuses are offered in utilities fell from 20.9 percent in 2009 to 12.5 percent in 2011.
“The impact the recession had on the economy caused many companies to take a hard look at the compensation packages they offer to all employees, and executives were not spared that scrutiny,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “Though many are optimistic about the country’s economic future, companies may choose to take a guarded approach to offering additional perks and incentives to their top employees, until significant improvements can be seen.”
About the Survey
Executive Compensation 2011/2012 analyzes national and regional data by 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 incumbents.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.
Tags: Compdata SurveysThis entry was posted on Wednesday, January 25th, 2012 at 5:00 am and is filed under Compensation/Incentive Programs, General HR. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.