New rules reveal CEO perks

U.S. disclosure rules that took effect last year are prompting companies to reveal (in proxy statements) a wide variety of perks provided to CEOs in fiscal 2007. Examples:

  • Kathleen Danenberg, Response Genetics Inc.: $86,622 for clothing expenses (since repaid).
  • Micky Arison, Carnival Corp.: $115,884 for courtside Miami Heat basketball tickets (he owns the team).
  • Bahram Akradi, LifeTime Fitness Inc.: $31,777, for high-speed wireless Internet access (to tap company systems from home).
  • Martha Stewart, $5,000 for her yoga instructor.

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Source: The Wall Street Journal 9 June 2008

What CEOs worry about

The greatest concerns of U.S. CEOs
(% citing challenge as of “greatest concern”)

  1. Sustained & steady top-line growth (41.3%)
  2. Excellence in execution (39.6%)
  3. Consistent execution of strategy by top management (38.5%)
  4. Profit growth (29.9%)
  5. Customer loyalty/retention (25.6%)
  6. Finding managerial talent (20.9%)
  7. Top management succession (20.1%)
  8. Corporate reputation (19.7%)
  9. Stimulating innovation/creativity (19.2%)
  10. Speed, flexibility, adaptability to change (18.2%)

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Base: Survey of 409 U.S. CEOs
Source: The Conference Board “CEO Challenge 2007” (4 October 2007)

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