Average CEO gets $65K in Perks, Watson Wyatt Data Services Finds
* Average cost of providing CEO execs with perquisites tops $65,000 * Car allowances and financial counseling services head the list of most common non-qualified benefits provided to employees
ROCHELLE PARK, N.J., July 10, 2007 – Watson Wyatt Data Services, a wholly-owned subsidiary of Watson Wyatt Worldwide, today announced the publication of its 2007/2008 Survey Report on Non-Qualified Benefits & Perquisite Practices.
This report is based on responses from 324 organizations that provided benefit information on five employee levels (CEO, Top Management, Senior Management, Middle Management and Professional (Non-Management)).
Within the report, a separate section is assigned to each of the perquisites or supplemental benefits covered. Prevalence data for each perquisite or supplemental benefit is presented by management level or industry classification and organization size. Also included is the percentage of all eligible employees by organization size.
The report shows that 68.8 percent of CEOs in participating organizations are provided with either a company car (through lease or purchase) or a monthly car allowance. The practice of providing employees with cars or car allowances at other levels of the organizations has remained steady as compared to 2006.
According to this sample, the average overall cost of providing perquisites for a CEO is $65,090. Top Management positions incur an average overall cost of $40,115 and Senior Management positions garner an overall average perquisite cost of $22,062.
39.2 percent of organizations surveyed provide financial counseling to their CEO. The average cost of providing this counseling increased from the previous year ($7,560 vs. $6,442).
Some form of Legal Counseling Services is provided to 11.7 percent of surveyed employee groups (all size organizations combined). The same demographic group was also found to receive payment towards at least a portion of athletic/fitness club membership for 17.9 percent of one or more employee groups.
The survey report also enumerates prevalence of various other non-qualified benefits and perquisites including supplemental medical or long-term disability insurance and supplemental retirement plans, cellular phone purchase/use, first class or business class traveling options and sabbatical leave.
The 2007/2008 Survey Report on Non-Qualified Benefits & Perquisite Practices is available in printed book format.
About Watson Wyatt Data Services
Watson Wyatt Data Services (WWDS), a wholly owned subsidiary of Watson Wyatt Worldwide, is a leading provider of compensation, benefits, and employment practices information to the global employer community. From offices around the world, we solicit, analyze, and publish an extensive library of printed, interactive and online survey reports. Our compensation databases are recognized worldwide as the most reliable source of current data for compensation planning.
Global scope, local knowledge …
Covering more than 80 countries across six continents, our data centers in the U.S., Canada, Europe, Asia, and Latin America annually compile reports on the remuneration, benefits, and employment practices of local and multinational companies. Our “in-country” experts apply their local knowledge of the varied employment markets, practices, and customs to deliver a complete compensation picture that can be used to create sound, market-based pay programs for entire organizations. Our international databases contain compensation information covering millions of employees based on the annual survey participation of organizations ranging from emerging growth companies to many of the world’s largest conglomerates.
In addition to compensation surveys, WWDS also publishes references that help HR practitioners attract, retain, and reward exceptional employees. These guides cover a wide variety of subject areas, including variable pay, performance management, and personnel policies on a local, regional, and global basis. For more information, visit our Web site at WWDS.com.
For more information, contact:
MaryBeth Iannaccone
Watson Wyatt Data Services
Tel: (201) 843-1177, extension 3480
E-mail: Marybeth.iannaccone@watsonwyatt.com