Page 282 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

268 The Complete Guide to Executive Compensation

Table 6-10. (continued from previous page)
TE Program Importance to Executive
E C Low Moderate High

Transportation
* B • Airplanes EB P
5 B • Automobiles EB P
* * • Boats and ships EB P

Travel and Entertainment
* B • Apartments or hotel rooms EB P
5 D • Club memberships EB P
* B • Conventions and conferences EB P
1 B • Credit cards
5 B • Domestic staff EB P
1 C • Expense accounts EB P
1 B • First-class travel EB P
1 C • Home entertainment EB P
1 B • Personal escort EB P
* * • Season tickets EB P
* B • Spousal travel EB P

1 B Work area
Summary totals
5 6 1
EB 18 5 0
P 0 19 13

* Depends on coverage

Medical
Health insurance can be significant in protecting the executive’s income in times of expensive
medical crises and, therefore, is of high importance. Health plans are covered under Section
105 and other sections of the Internal Revenue Code. Basically, there are two types of plans:
managed care and fee for service.
Managed Care. This has become the dominant form of health-care coverage today and
includes HMOs, PPOs, and POSs. Managed care attempts to control the cost of medical
expenses by controlling the access of patients to specialists and negotiating the fees of
health-care providers (e.g., hospitals and physicians). Each person covered by a managed
care organization is charged a monthly fee. The per capita charge has given these plans the
name capitation plans.