I have been doing some research on the idea behind CEOs and other executives that are receiving compensation from their companies that includes the use of a private company jet or the corporate jet. There has been a shift in public perceptions of C-level executive compensation since the down turn of the economy. As companies downsize their work force and they tighten their belts, many C-levels employees are scrutinized on their pay and any perks received. Part of the perceived perks in a company is the use of the company or corporate jet.
Many companies state that their C-Level employees’ use of corporate jets are to “ensure security” to “enable privacy” or other reasons stated. This seems to fall on infertile ground as it relates to the debate. Many see corporate jet use as a mere added benefit to the already soaring executive level pay. Reading through a recent article by Alison Grant of The Plain Dealer, she cited a recent study performed by The Corporate Library wherein they identified nearly 400 corporations that listed aircraft expenses. Of the companies that she looked at in the Northeast Ohio area many of them reduced their aircraft or eliminated them completely.
Many companies continue to use corporate jets for their executives and many of them cite the use of the jet as a security precaution. The fact that they are using the personal use of the company aircraft as compensation will continue to come under scrutiny as we wade through these tough economic times. I am curious about how the taxation of personal use is changing and how it is impacting the private use of the corporate jet. More to come as I continue to research this issue.