Jets! Cars! Home security services! All of these perks add to tech CEOs' pay packages
Many tech vendors have shied away from extravagant perks since the financial meltdown, government bailouts and ensuing scrutiny of executive compensation.
But there are still plenty of bountiful perks worth highlighting. Like a $1.5 million tab for home security. Or how about the $36,619 one company paid to reimburse its CEO for the taxes he had to pay on the $106,589 he gained by using company aircraft for personal flights?
Plus, CEOs often get multimillion-dollar "golden parachutes" when they leave a company. Read on to find out which tech CEOs enjoyed the priciest perks in 2010 and which ones went to work perk-free.
1. Mark Hurd
Ousted CEO Mark Hurd enjoyed plenty of pricey perks during his final year at HP, including $362,899 for home security and $158,816 for personal aircraft usage. But that's not all. HP also paid Hurd $53,762 for miscellaneous perks (including $13,500 for financial counseling), a $36,619 tax gross-up (which HP describes as a reimbursement for taxes on meals and other expences for individuals accompanying an executive officer to HP-sponsored events), $11,025 for NQDC company match and $9,562 for 401(k) company match. Hurd, who's now at Oracle, also departed HP with an eye-popping $12.2 million severance payment.
2. John Swainson
John Swainson racked up the perks during his final year as CEO of CA. His tally includes: $106,589 for personal aircraft use, a $36,619 tax reimbursement for personal aircraft use, $23,505 for company-provided housing, $21,749 for employer contributions to benefit plans and deferred compensation plans, $844 for company-provided automobile transportation and $799 for matching charitable contributions. But the biggest going away gift is the $4.5 million severance payment Swainson received upon his retirement on December 31, 2009.
3. Larry Ellison
Larry Ellison consistently ranks among the highest paid tech CEOs, and the perks he netted in fiscal 2010 are among the priciest, too. The bulk of Ellison's $1.5 million in perks went to security-related costs and expences for his residence ($1,478,600). He also received $10,078 for benefit plans, including life insurance and long term disability, and $4,642 in services from a law firm Oracle hired to help its executives report their personal political campaign contributions.
4. Mark Canepa
Extreme Networks isn't big on perks, typically doling out just a few thousand dollars to senior executive officers for matching 401(k) contributions and group life insurance contributions. One significant exception in fiscal 2010 was for former CEO Mark Canepa, who collected $426,494 in severance pay after resigning in October 2009.
5. Cathie Lesjak
HP CFO Cathie Lesjak, who served as interim CEO during the search for Mark Hurd's successor, racked up perks worth $84,034 in 2010. Her extras included: $28,310 for miscellaneous perks (including $18,000 for financial counselling), $20,249 for personal aircraft usage, $11,025 for NQDC company match, a $9,026 tax gross-up, $8,427 for 401(k) company match and $6,997 for home security services and systems.
6. Tim Cook
Apple COO Tim Cook, who stepped in as CEO during Steve Jobs' medical leave of absence, collected perks worth $58,306 in fiscal 2010. His extras included: $14,700 for company 401(k) contributions, $3,605 for company-paid term life insurance premiums and a payment of $40,001 to cash out accrued and unused vacation.
7. Bill McCracken
CEO Bill McCracken took the helm in the final quarter of CA's 2010 fiscal year and netted $36,627 in perks: $25,427 for personal use of company aircraft and $10,200 for matching charitable contributions.
8. Michael Klayko
Brocade CEO Michael Klayko received perks valued at $20,341 in 2010. The company didn't break out the cost of the extras, but it reported that its CEO's perks included health benefits, company 401(k) contributions, guest expences on a business-related trip and personal use of company aircraft.
9. Robert Beauchamp
BMC CEO Robert Beauchamp's perks include $11,875 for matching 401(k) contributions and $6,939 that BMC paid on behalf of Beauchamp for term life insurance and supplemental disability insurance.
10. Enrique Salem
Symantec CEO Enrique Salem didn't receive a lot of perks in 2010, but he did net $10,000 as a reimbursement for tax services. The other $7,387 Salem received was to cover expences related to his attendance at a company sales achiever's trip.
11. Michael Dell
Dell used to pick up the tab for Michael Dell's personal and residential security, to the tune of $1 million in 2008 and $1.2 million in 2009. But not anymore. "Effective for Fiscal 2010, Dell will only provide Mr. Dell with business related security protection," the company said in its proxy statement. The only perks listed for Dell in 2010 add up to $13,623 and are linked to his retirement and benefit plans.
12. Steve Ballmer
Microsoft CEO Steve Ballmer's 2010 extras were limited, just $7,350 for 401(k) company match and $3,771 for imputed income related to Microsoft's benefits programme, which is just how the company wants it:
"Our named executive officers are eligible for the same benefits made available to our other US-based full time employees, including our Section 401(k) plan, employee stock purchase plan, health care plan, life insurance plans and other welfare benefit programmes. Perquisites are provided to our named executive officers only in special situations, during fiscal year 2010 we did not provide any significant perquisites to our named executive officers," the company said in its proxy statement.
13. John Chambers
Cisco CEO John Chambers' 2010 perks amounted to $11,025 for matching 401(k) contributions. The same employee benefit plans are available to all Cisco employees, and "Cisco's named executive officers generally do not receive any special benefits such as payment of club memberships, financial planning or executive dining rooms," the company noted in its proxy statement.
14. Shantanu Narayen
Perks are kept to a minimum at Adobe, where CEO Shantanu Narayen received $7,350 for company 401(k) contributions and $336 for life insurance premiums. "We provide limited perquisites to our executives," Adobe said in its proxy statement. "In considering potential perquisites, the Executive Compensation Committee considers the cost to Adobe as compared to the perceived value to our employees."
15. Jim Whitehurst
Perks aren't a big deal at Red Hat, where the only extras CEO Jim Whitehurst received amounted to $5,289 and are attributed to 401(k) matching contributions and company-paid premiums for life insurance and accidental death and disability. These benefits are also generally available to all employees, according to the company's proxy statement.
16. Tom Georgens
NetApp isn't doling out many perks to its senior leaders. CEO Tom Georgens' perks are limited to $1,932, which NetApp says is the imputed income of term life insurance in excess of $50,000.
17. John McAdam
F5 picked up the tab for CEO John McAdam's Internet service with a $600 stipend. As for other executive perks? There aren't any. "The Company's executive officers participate in broad-based benefit plans that are available to other employees. The Company does not currently provide additional material perquisites for its executive officers," F5 said in its proxy statement.
18. Marc Benioff
Perks? What perks? Marc Benioff's 2010 compensation package included no perks, nor did he take home any extras in 2008 or 2009. The other senior executives at Salesforce.com didn't either. The company makes its no-perk policies clear in its proxy statement: "Like our other employees, our executives, including the Named Executive Officers, participate in our employee benefit and welfare plans, including medical and dental care plans and a Section 401(k) plan. We do not provide our executives, including the Named Executive Officers, with any additional retirement benefits, nor with any nonqualified deferred compensation plan, nor any perquisites or other personal benefits."
19. Steve Jobs
There were no perks in 2010 for Apple CEO Steve Jobs, who continues to forego all compensation except for his customary $1 salary.
20. Joe Tucci
In his 10th year as EMC CEO, Joe Tucci received perquisites totaling $151,184, which included: $134,684 for personal use of company-owned aircraft, $15,000 for financial planning and $1,500 for matching 401(k) contributions.