You think you’ve got financial problems, Bucko? It’s time you considered the squeeze that others are feeling. For example, CEOs.
Yeah, they’re paid a bundle, but that comes with its own problems, such as tax bills to pay, country club dues to cover, and security cost to protect CEOs from riff-raff like you. Who do you think shells out for these expenses, bucko?
Enjoying Hightower? How about a weekly email that gives you the full scoop?
Well, a group named 24/7 Wall Street has probed into that question. Sure enough, even the most fabulously-paid CEOs treat these personal expenses as perks to be paid – not by them – but by shareholders.
For example, Occidental Petroleum Chieftain Ray Irani’s paycheck was more than $30 million last year. To dodge all the taxes he owed on that, Ray incurred $391,000 in accounting and legal fees. No problem, though – he just passed the bill to Oxy’s shareholders.
Another pricey problem for corporate high-flyers is transportation. You might have trouble getting your employer even to pay for the gas you use on company business, but then you’re not Michael Jeffries, boss of Abercrombie & Fitch. He was paid a handsome $38 million last year, but he still billed the toney haberdasher $639,000 for his personal use of the corporate airplane.
How about executive bodyguards? Oracle’s top dog, Larry Ellison, is a high-techer who keeps downsizing and offshoring his workforce, even as he upsizes his own take. Last year, he upsized to an eye-poping $84 million in pay, the highest of any CEO. Perhaps feeling a bit vulnerable, Larry got Oracle to pay $1.4 million for a security detail to protect him.
Even if you’re not a shareholder, you get to help pay for such executive perks, since the corporations pass along these expenses to us taxpayers. To see more of what you’re paying for go to www.247wallst.com.
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