The Cost of Executive Perks

Perk Hoggs on the cost of executive perks.

The problem is not the cost of the perks themselves; at a ten-billion-dollar corporation, they?re hardly even a rounding error. It?s what they are symptomatic of. Perks and rigid management hierarchies tend to go together; perks are designed in part to reinforce status divisions, and rigid hierarchies do not lend themselves to intelligent decision-making, since they isolate executives from the rest of the company. Also, C.E.O.s who indulge in perks are likely to be profligate in general with shareholder money.

There are problems in both the private and public sector. Our senators have incredible health care AND average much better investment returns than us poor taxpayers. There are plenty of examples of corporate excess. Hoggs makes some useful points. Via John Robb.