Eight Outrageous CEO Perks

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5. Personal Accounting
>2011 value: $250,000
>CEO: Aubrey McClendon
>Company: Chesapeake Energy (NYSE: CHK)

Chesapeake Energy company CEO Aubrey McClendon has been in the press as much as any other CEO this year. He took out $1.1 billion in personal loans on wells that Chesapeake gave him. And then, Reuters reported, “McClendon also ran a $200 million hedge fund that was registered at Chesapeake’s Oklahoma City office from 2004 to 2008 and traded in the same commodities Chesapeake produces.” The trouble with the McClendon scandal and the departure of several board members at Chesapeake has pulled shares down more than 20% this year. McClendon has been on the board of Chesapeake for 23 years as of the last proxy, and is listed as a co-founder. Over the last three years, according to the same proxy, he had total compensation of over $57 million as the head of Chesapeake. According to company filings, the CEO’s 2011 benefits included “$250,000 for the costs related to personal accounting support provided to Mr. McClendon by our employees.”

Also Read: The 12 Companies Paying Americans the Least

6. Life Insurance
>2011 value: $131,280
>CEO: Leslie Moonves
>Company: CBS (NYSE: CBS)

Les Moonves is the chief executive of CBS, which is controlled by its largest shareholder and chairman Sumner Redstone. Redstone is among the richest people in America, with a net worth of $4.1 billion, according to Forbes. Redstone’s support of the CEO of the television network company has made Moonves wealthy as well. The former president of Warner Bros. Television has made over $170 million as CBS’s CEO in the last three years. CBS SEC filings show that part of Moonves pay package includes $131,280 in life insurance premiums paid by the company in 2011.

7. Vacation/Vacation Home
>2011 value: $453,382
>Chairman: William P. Foley II
>Company: Fidelity National Finance (NYSE: FNF)

William P. Foley II, the chief executive of Fidelity received one of the oddest benefits of any large public company executive. Fidelity paid him for the use of properties he owns. His list of perks is much longer than that. The firm’s proxy states that in 2011, the company paid $443,382 “to Rock Creek Cattle Company, Ltd. Which is owned by Foley. Those payments, according to the company were for “fees related to company meetings at the facility and membership dues for certain company officers, including $18,000 in dues for our named executive officers.” Other payouts by Fidelity to Foley-owned or controlled companies include “$13,249 to Hotel Les Mars, LLC, $25,974 to Foley Family Wines, $1,172 to Kuleto Estate, $57,946 to EOS Acquisition II, LLC, $1,985 to Glacier Jet Center, $1,171 to Mackenzie River Pizza Whitefish, $12,483 to Foley Estates Vineyards and Winery and $1,335 to Glacier Restaurant Group, LLC.”

8. Personnel Costs
>2011 value: $83,327
>Chairman: Martha Stewart
>Company: Martha Stewart Living Omnimedia (NYSE: MSO)

Martha Stewart Living Omnimedia founder and chairman, Martha Stewart, is treated extremely well as head of a company that consistently loses money and had revenue of only $44 million in the last quarter. The tiny company has given her compensation of over $21 million during the last three years. Stewart has a great deal of control over her financial fate. She owns 100% Class B shares in the company, which gives her a majority vote on all matters regarding the corporation. Among her many, many benefits, according to the proxy is “$83,327 for the portion of personnel costs for individuals performing work for Ms. Stewart for which we were not reimbursed.”

- Douglas A. McIntyre

Also Read: America’s Most Valuable CEOs

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