Despite the recession, we are seeing corporate jet expenses increase and incidence levels hold steady (when comparing the most recently-available year’s data to data from the 12-months prior). Here are a few of several key takeaways from my study of Russell 3000 companies:
- Fifteen percent of Russell 3000 and 40 percent of S&P 500 report aircraft expense for CEOs’ personal use
- Aircraft expense is up an average of over 70 percent (median 9 percent) for Russell 3000 companies with expenses in both years
- Tax gross-ups and family use are still prevalent
Most troubling is the continued evidence of unreimbursed family and personal use, payment of related tax gross-ups, and related party transactions (such as at Williams-Sonoma) where the plane being leased for the CEO’s use is already owned by the CEO’s other company. It is these practices that we believe call into question the culture in the boardroom.
For more details, including the top five expenses in the 2008/9 period analyzed, download a free copy of “CEOs' Personal Use of Corporate Jets Still Flying High” from The Corporate Library's online store.
Michelle Lamb - Research Associate
