Outrageous Executive Perks

MarketWatch lists 10 of the most egregious executive perks. I liked #3 in particular, a “stay” bonus even if you die:

Some companies are so keen to hold on to executives that they promise big pay and benefits even if the talent dies — in contracts known as golden coffins.
Life insurance policies worth millions of dollars are the least controversial part of these packages — even though buying such coverage without company help shouldn’t be too difficult for executives pulling in six or seven figures a year.
A peek under the lid of several golden coffins also reveals big severance payments, pensions and continued salaries if executives pass away.
Abercrombie & Fitch agreed to pay Chief Executive Michael Jefferies a $6 million “stay bonus” to keep him running the successful fashion clothing retailer, according to its 2007 proxy statement.
If Jefferies dies, the bonus stays and is paid out, along with $10 million from a company-purchased life insurance policy, to his estate. The retailer would also pay some of his incentive compensation, bringing the golden coffin’s value to more than $17 million, assuming he died on Feb. 2, 2008, according to the proxy.

Posted by on May 13th, 2009 at 9:58 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.