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There are family values, and then there are family
values. For example, what’s the value of a private jet
to make a family trip to the Caribbean, or of special spa treatments or
other perks for the whole family? All you have to do to receive these
values is to be a privileged family member of a major corporate CEO. We know that elite executives get exorbitant
multimillion-dollar paychecks and lavish benefits. Less known, however, is
that the spouses and kiddos of CEOs are now getting their own perks, paid
for by corporate shareholders and subsidized by ordinary taxpayers. For example, Alan Mulally, the head honcho of Ford
Motor Co., hauled in $28 million in pay last year — but the small
print in his contract also guarantees that his wife and five children, plus
their guests, can hop a ride on the corporation’s jets to go wherever
they want, free of charge, whether he’s on board or not. In just four
months last year, he approved $173,000 worth of jet-set travel for his
high-flying family and friends. When spouses fly on the corporate tab, the executives
owe taxes on the value of the trips. No problem, though — many
corporations even reimburse the CEOs for the taxes. Ray Irani, for example,
CEO of Occidental Petroleum, got $45,000 last year to cover the tax bill
for his wife’s flights on Occidental’s jets. Irani’s
paycheck totaled $416 million last year. Couldn’t he at least pony up
the taxes for free spousal jet-setting? One reason that board members are willing to bestow
such extravagances on America’s corporate royalty is that the
companies can deduct these expenses from their federal income tax.
It’s one thing to freeload on shareholders, but why should the public
subsidize these gilded lifestyles?
Jim Hightower is a national radio commentator,
columnist, and author.
This article appears in Jul 19-25, 2007.
