Page 271 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 6. Employee Benefits and Perquisites 257

However, it is not uncommon to have an executive dining room in addition to a cafete-
ria on the company premises. Such facilities range from a separate room serving the same fare
as the cafeteria to luxuriously appointed rooms where uniformed waiters serve dry martinis
and excellent meals. In fact, the cuisine may be without equal in the city due to the impressive
gourmet credentials of the chef. While such facilities are primarily used for luncheons,
occasionally they are the sites for dinners. The luncheons wane in comparison to the elegant
dinners, featuring delicate hors d’oeuvres, vintage wine, and outstanding entrées, all served
by tuxedoed waiters.
The dining room or rooms are also physically placed to ensure a marvelous view, prob-
ably only matched by that of the office of the president and chairman of the board. Where
there is more than one room, they may be of comparable quality in appointments or they
may be structured in such a way as to indicate eligibility (e.g., corporate officers use the A
room, division presidents and other key executives the B room, and the remaining executives
the C room). Where rooms reflect executive level, they usually differ in size, elegance of
furnishings, type of crystal and china, level of cuisine, and choice of beverages.
Another variation permitting discrimination is reserving certain tables or seats for a
handful of senior officers. This may vary from a table in the executive dining room to simply
a table in the cafeteria, assuring the executive of seating without having to wait in line.
In addition to their convenience, such facilities are often justified in terms of their privacy
when executives meet among themselves or with important outside contacts, including cus-
tomers. Executives are usually charged for a portion of the cost (either a fixed monthly charge
regardless of use or on a per-use basis).
Since informal discussion of company business over lunch among company executives
has a difficult time meeting IRS requirements for escaping imputed income, some companies
have taken the position of scheduling regular luncheon meetings. In some instances, the
company has successfully argued that the participants are not otherwise available for meeting.
Since the meal has been scheduled for the convenience of the company, there is no imputed
income for the individual. Nonetheless, it is difficult to assign this perk more than a
moderate importance rating.
Home

As described in the flexible work schedule category, home is for many an extension of the
work site. For those officially telecommuting, the company will usually purchase or provide
some type of allowance for computer and communications equipment and exercise equip-
ment for those weekend workouts. A dedicated work site, preferably a separate room, is more
conducive to work away from the office. Comprehensive insurance coverage might also be
provided. This could include burglary, injury to others, damage to own property, damage to
property of others, and additional living expense. A more generous perk would include a
cook, butler, and maid in addition to full reimbursement for business-related entertainment
at the home. Housecleaning services are also desirable.
If personal safety is a factor, the company probably also pays for the installation of an
electronic security system in the executive’s home. High-end security systems would include
video cameras, door and window sensors, motion detectors, phone line security, and opening
devices that are activated by finger or palm prints, retina scans, and voice recognition.
Income may or may not be imputed depending on the specifics. Unless security is a major
issue, this perk is probably of moderate importance at best.