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Monday, February 22, 2010

This Counseling neither Washes nor Flies...

More excesses by execs...

Morningstar’s Footnoted.org finds unflattering, unusual business perks - chicagotribune.com: "In May 2009, as companies like Sara Lee began to eliminate executive cars and private use of corporate jets, Motorola co-Chief Executives Gregory Brown and Sanjay Jha were required to use corporate jets for personal travel "in connection with our overall security program," which resulted in a combined "incremental cost" of $558,306 on the planes alone in 2008. But at some point between 2004 and 2009, Motorola downsized (but also updated) its fleet of six Cessna Citation IIIs and a Gulfstream IV with three Gulfstreams, including one that can go around the world with one stop, and a Dassault Falcon 50EX.

•In 2008, Deere & Co. began disclosing that its executives were receiving company-provided car washes, at an unreported cost. More recent filings show that's still the case. But beginning in fiscal 2010, executives have to reimburse the company for security services, such as drive-by checks and alarm responses at their homes.

•In fiscal 2007, Deere Chairman Robert Lane received $324,825 worth of personal use of the corporate jet, a threefold increase from the year before. His use rose again in 2008 to $401,732. But in 2009, it dropped to $91,509. Why? The company stopped including maintenance costs in its calculations due to "minimal personal usage of company aircraft."

These perks also can go two ways. When former FedEx Executive Vice President Kenneth Masterson retired five years ago, the company gave him an unusual gift: a John Deere tractor.

Footnoted has also highlighted the growing trend of companies paying for "financial counseling" for its executives. Normally, this perk amounts to a few thousand dollars. But at Kraft, Executive Vice President Sanjay Khosla received a $51,679 "financial counseling allowance" in 2007. His allowance fell to a more standard $7,500 in 2008. The company also apparently spent $12,443 maintaining Chief Financial Officer Timothy McLevish's former home in New Jerseyin 2008, in "accordance with Kraft's relocation policy" for employees "above a certain level."

Kraft did not return calls for comment; the other companies confirmed details or otherwise acknowledged the filings..."

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