Executive perquisites or "perks" constitute additional compensation for senior executives
which are not available to other salaried employees. These extra benefits are normally
structured to recognize the value of the executive to the company, extraordinary
demands on his or her time and other unique conditions.
Some perks are structured to maximize executive work time including drivers to and
from work, convenient parking, installation of home communications systems, financial
planning, and even the use of company airplanes. Others recognize the unique positions
of executives, especially CEOs, by providing security both at home and when traveling
(particularly in foreign countries). Typically, executive perks constitute a modest
component of executive pay at 1 to 5%.