The recipient of $25 billion in TARP money plans to buy two new corporate jets.
Private Jet Use by CEOs Skyrockets
Despite the Recession, Executives Still Fly in Style for Ease and Security
As hordes of Americans watched their retirement savings disappear and their home values plunge after the economic crisis started in September, many corporate CEOs rode high, literally.
Fortune 100 CEOs used private aircraft more in 2008 than in any of the previous five years, according to a new study by Equilar, a firm that tracks executive compensation.
"Equilar's most recent research suggests a reluctance on the part of companies to eliminate or reduce aircraft perks," the report said.
So how much do these fancy jets cost each company? In 2008, the median value of CEO travel for the year was $141,477, up from $109,743 a year earlier. Equilar notes that high fuel prices might have contributed to part of that increase.
But apparently, more CEOs took advantage of the jets last year. Equilar said 79.2 percent of those Fortune 100 CEOs got jet benefits last year, up from to 74.7 percent in 2007. Some companies have since announced plans to cut back on jet use.
Related
Some CEOs used their jets more than others. According to Equilar's review of Securities and Exchange Filings, the top 10 users, according to 2008 value of jet expenses, were:
GMAC CEO Alvaro G. de Molina: $2,259,595
IBM President and CEO Samuel J. Palmisano: $493,881
Tyson Foods President and CEO Richard L. Bond: $458,069
American Express Chairman and CEO Kenneth I. Chenault: $414,702
Deere & Co. President and CEO Robert W. Lane: $401,732
Comcast Chairman, President and CEO Brian L. Roberts: $392,732
News Corp. Chairman and CEO Rupert K. Murdoch: $378,923
Morgan Stanley Chairman and CEO John J. Mack: $377,342
Safeway Chairman, President and CEO Steven A. Burd: $374,520
Ford President and CEO Alan R. Mulally: $344,109
These big companies often argue that it is necessary to fly executives and their families around on private jets. This is not a lavish perk, they say, but a safety and security requirement as well as a time-saving tool for the busy leaders.
Comment & Contribute
Do you have more information about this topic? If so, please click here to contact the editors of ABC News.
External links are provided for reference purposes. ABC News is not responsible for the content of external Internet sites. Copyright © 2010 ABC News Internet Ventures.
Quotes delayed 15 minutes for NASDAQ. 20 minutes for NYSE and AMEX. Market Data provided by Interactive Data. Terms & Conditions.
Powered and implemented by Interactive Data Managed Solutions
