CEO Use of Private Jets Rose in 2008
Flying a private jet became taboo in 2008–at least that is what the headlines lead you to believe.
After the outcry over the General Motors jetting to D.C., and related headlines like J.P. Morgan Chase’s new jet hangar, CEOs were supposedly grounded. Private jets = excess. And excess was bad.
As it turns out, companies actually increased the amount they spent on private jets last year. According to a study released this week by executive pay consultant Equilar, most corporate jet perks remain strong, and there is no sign they are fading.
The report showed the value of CEO airplane perks in 2008 increased 29%, to $141,477 from $109,743 a year earlier. It is the highest level in five years.
One reason for the increase, according to Equilar, was rising fuel costs in early 2008. Still, the pay consultantancy said its research “suggests reluctance on the part of companies to eliminate or reduce aircraft perks.”
If the research is true, why are the business-jet companies taking such a hit? Perhaps it is from a decline in personal jet travel. Maybe it reflects a decline in non-CEO travel. Perhaps that stat is an anomaly.
Or, maybe public outrage over jets has been overplayed in the media. What do you think has happened to private jet use?
Posted by Robert Frank
click here to read Robert Frank's blog
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