Executive Pay Shows Modest 2012 Gain, but Oh Those Perks

Dodd-Frank rules? Securities and Exchange Commission lawyers? Leave them behind. And let yourself sink into the buttery leather seat of your corporate jet as it soars through the clouds.

That’s what Steve Wynn did. As chief executive of Wynn Resorts, he sat back and enjoyed more than a million dollars’ worth of personal travel last year on his company’s private jet.

It gets better: in December, the company took delivery of the first G650 jet to roll off Gulfstream’s assembly line. A $65 million wonder, the plane can whisk Mr. Wynn from Las Vegas, where Wynn Resorts has its headquarters, to New York, where he owns a $70 million penthouse overlooking Central Park, and it should make 2013 another busy year aloft for him. (Wynn Resorts declined to comment.)

Indeed, while Mr. Wynn may have been a very frequent flier in 2012 among chief executives listed in an annual survey of executive pay conducted for The New York Times by Equilar, an executive compensation data firm, he has plenty of company in the shareholder-unfriendly skies.

As C.E.O. of Hertz, Mark Frissora pushes rental cars, but he racked up nearly a half-million dollars’ worth of personal travel on the corporate jet last year.

Marsh & McLennan, the risk management company, doesn’t own its own plane — it prefers holding a fractional share of a jet — but that didn’t stop its chief, Brian Duperreault, from running up $441,875 in private plane travel on the company tab before he retired at year-end.

These highfliers help explain why pay for perks like jet travel and other supplemental benefits including pension contributions and life insurance policies jumped last year, even as overall compensation rose only modestly.

For the 100 highest-paid C.E.O.’s among American companies with revenue of more than $5 billion, the typical 2012 perks package was worth $320,635, up 18.7 percent from 2011, according to an analysis by Equilar for The Times. By contrast, median total pay among the 100 C.E.O.’s rose just 2.8 percent, to more than $14 million.

The data are preliminary — public companies have 120 days after their fiscal year-end to disclose the pay of top executives in their proxies. Many corporations whose fiscal year ended in December won’t file before the end of April.

Still, the data reveal the contours of executive pay packages. Besides the jump in perks, overall cash compensation also made a comeback, rising 19.7 percent, to $5.7 million. Cash bonuses jumped 25 percent.

THE highest-paid C.E.O., Lawrence J. Ellison of Oracle, perennially ranks among the best-paid executives, but other leaders in 2012 didn’t come from sectors where you might expect to find them, like technology or Wall Street.

Instead, companies with familiar brand names were among the most generous, with Robert A. Iger of Disney, Mark G. Parker of Nike, Howard Schultz of Starbucks and Kenneth I. Chenault of American Express all in the top 10, each with more than $25 million in total compensation.

The second-highest-paid chief executive on the list, Richard M. Bracken of the hospital chain HCA, received more than half his pay in the form of special compensation worth nearly $22 million, but it was nearly all from from dividends rather than traditional perks like the company plane.

Shareholders, too, enjoyed solid gains in 2012, with the typical company’s stock returning 17 percent.

And at a few companies where profits dropped, C.E.O. pay declined as well. At Ford, where earnings per share fell 7 percent, the pay of the chief executive, Alan R. Mulally, sank 29 percent. James P. Gorman, the chief of Morgan Stanley, saw his compensation fall 20 percent as both revenue and profits at the company tumbled in 2012.

J.C. Penney did not make this year’s list because it filed its proxy after the March 29 cutoff, but its board definitely sent a message to Ron Johnson, the former Apple executive who took over in late 2011 and has so far failed to turn around this troubled retailer. It cut his total compensation by almost 97 percent, to $1.9 million, and didn’t give him and several other top execs any bonus payments.  

In Silicon Valley, Perks Now Begin at Home

Today, Evernote’s 250 employees — every full-time worker, from receptionist to top executive — have their homes cleaned twice a month, free.

It is the latest innovation from Silicon Valley: the employee perk is moving from the office to the home. Facebook gives new parents $4,000 in spending money. Stanford School of Medicine is piloting a project to provide doctors with housecleaning and in-home dinner delivery. Genentech offers take-home dinners and helps employees find last-minute baby sitters when a child is too sick to go to school.

These kinds of benefits are a departure from the upscale cafeteria meals, massages and other services intended to keep employees happy and productive while at work. And the goal is not just to reduce stress for employees, but for their families, too. If the companies succeed, the thinking goes, they will minimize distractions and sources of tension that can inhibit focus and creativity.

Now that technology has allowed work to bleed into home life, it seems that companies are trying to address the impact of home life on work.

There is, of course, the possibility that relieving people of chores at home will simply free them up to work more. But David Lewin, a compensation expert and management professor at the University of California, Los Angeles, said he viewed the perks as part of a growing effort by American business to reward people with time and peace of mind instead of more traditional financial tools, like stock options and bonuses.

“They’re trying to get at people’s larger lives and sanity,” Mr. Lewin said. “You might call it the bang for the nonbuck.”

At Deloitte, the consulting firm, employees can get a backup care worker if an aging parent or grandparent needs help. The company subsidizes personal trainers and nutritionists, and offers round-the-clock counseling service for help with issues like marital strife and infertility. Deloitte executives, and other experts, said they believe that such benefits were likely to spread.

“The workplace was built on the assumption that there was somebody at home dealing with the home front,” said Anne Weisberg, a longtime human resources executive who helped write a book about new kinds of workplace policies.

Not only is that no longer the case, she said, but the work-life pressures seem to be building. “There’s a greater awareness that we’re pushing things to the limit and something’s got to give,” she said.

Hannah Valantine, a cardiologist, professor and associate dean at the Stanford School of Medicine, said the university’s experiment with helping out at home was part of a broader effort to support doctors, given their hyperkinetic pace of life.

“If you’re coming home at the end of the day exhausted and you have a pile of cleaning to do, it’s the kind of things that leads rapidly to burnout, and burned-out physicians don’t give the best care,” Dr. Valantine said. “We’re trying to send a very strong message that the institution cares about you and about your life.”

Some compensation experts argue these types of perks ultimately do little to attract employees and might obscure more fundamental problems at companies that have trouble retaining talent.

That is a challenge Stanford owns up to, given the brain drain suffered by academic hospitals, where relentless demands include treating patients, writing grants, doing research and traveling to conferences.

So 18 months ago, Stanford hired a consulting firm called Jump Associates to better understand why so many academic doctors feel burned out. The company videotaped them from the time they woke up, through the workday and until they and their families went to sleep.

In one video, a kidney specialist told a story that shocked the researchers: while she was on maternity leave, she bought a minivan to ferry the children of friends and neighbors to school and sports practices.

That way, the doctor explained, she would be able to ask for favors when she returned to work — and that, in theory, would enable her to juggle the dual demands of work and family.