|Gary Strauss USA TODAY|
By Gary Strauss
While many companies are stripping away some of the costly perks bestowed on CEOs, one remains a staple of many executive compensation packages: the country club membership.
The cost can be eye-popping. In a new proxy filing,
Few companies, however, disclose any reason why they provide executives club memberships.
"In certain communities, business happens in that environment, and employers would say this is really a business expense," says
Country clubs are frequently part of a broader perk program that includes stipends for investment planning, medical costs, cars, use of the corporate jet and other goodies.
Club memberships are also provided for former CEOs.
At a time of increasing criticism over exorbitant CEO pay and government-mandated disclosure requiring more corporate details over pay and perk plans, many companies are cutting back on clubbing.
Yet others, such as
Pay experts say such perks are often boondoggles, given handsome compensation packages.
"It's a status symbol, and the justification is that it's a business expense, so companies absorb the cost," says Compensation Resources Managing Director
|Copyright:||(c) 2012 (C) Gannett News Service|