Why does WPP's Martin Sorrell need spousal travel expenses? 10 outrageous perks paid to super-rich CEOs
After WPP investors recovered from the shock of CEO Martin Sorrell's huge pay package of £43m, they looked at his other expenses and found that he received £274,000 in spousal travel expenses.
The astonishing amount, which allowed his wife Cristiana Falcone-Sorrell to accompany the chief executive on business trips, angered investors and analysts.
Paul Hewitt, business development manager at proxy voting agency Manifest, told IBTimes UK: "The sheer amount of money they've spent on Mrs Sorrell's travel exceeded pretty much the total amount that nearly all of the other chief executives in the FTSE 100 had for their total 'other remunerations'. It looks bad, in my view, and it looks arrogant."
Hewitt pointed out that David Forsey, chief executive at Sports Direct, was paid less in annual salary (based on Manifest data collected to April 2014).
"For a company like WWP, in the sector that they work in, it would be naïve to think they're not conscious of the messages they send out, I mean that's their day job. It looks arrogant and it gives the impression that they don't care what people think," said Hewitt.
From the boss's donations to charity, to holidays with the company's private jet, IBTimes UK has put together a Top 10 most interesting extra expenses paid to executives, based on research by Paul Hewitt for Manifest.
The Expenses Account
1. Martin Sorrell, WWP chief exective: £453,000 ($700,700, €624,920)
Includes: a car and/or car allowance plus the use of a driver as required; medical, life and disability insurance; accommodation allowance in lieu of hotel expenses; tax and legal advice; home office support; club memberships deemed necessary for the role; and spousal travel.
2. Alan Clark, SABMiller chief executive: $267,630
Includes: company car or car allowance; fuel card; family medical and dental insurance; long-term disability insurance; life insurance; accompanied travel; occasional overnight accommodation; club subscriptions; beer allowance and access to a company bar.
3. Greff Steinhafel, Target chief executive, president and chairman: $176,124
Includes: company-provided car or car allowance; personal use of company-owned aircraft; on-site exercise room; spousal travel on business trips; gifts; and executive physicals.
4. Charles Scharf, Visa chief executive: $12,405
Includes: company car and driver; company tickets for sporting, cultural or other events for personal use rather than business purposes; companion travel on business related flights on corporate aircraft; premiums for long term disability benefits; charitable contribution matching programs.
5. Richard Gonzalez, Abvie Inc chief executive and chairman: $549,566
Includes: costs for non-business-related air travel; use of corporate car; and financial planning services.
6. Robert Iger, chief executive and chairman of Walt Disney: $1,088,342
Includes: health care; insurance; educational expenses; charitable matching contribution; vehicle allowance; security and air travel.
7. Donald Thompson, chief executive and president of McDonald's: $165,595
Includes: Personal use of company-provided cars or an allowance; annual physical examinations for the executives and their spouses; matching charitable donations; and personal use of the company's aircraft.
8. David Darroch, Sky chief executive: $27,702
Includes: Paid holiday; sick pay; Sky subscription package; company car allowance; and use of a company car generally for business travel purposes.
9. David Farr, Emerson Electric chairman: $375,758
Includes: medical, life and disability insurance; the Company's charitable matching gifts program; residential security monitoring and personal security as needed; use of the company aircraft for all business and personal travel; leased cars; club memberships; financial planning; and tickets for sporting or other events.
10. Moya Greene, Royal Mail chief executive: $44,940
Includes: two return flights to Canada each year; financial advice; and use of a driver for business-related travel.
© Copyright IBTimes 2024. All rights reserved.