Thursday, June 16, 2011
Personal Use of Corporate Jets
The Wall Street Journal ran a major story today on the personal use of corporate aircraft by company executives. They found that many CEOs spend a great deal of time using their corporate jets for personal travel. Many executives consider the use of a corporate jet a major perk. In my view, corporate jets can serve a very useful function in terms of allowing executives to travel much more efficiently than if they had to use commercial flights. Some use of the jet for personal reasons may be appropriate as well, since the line between personal and business travel can be blurred at times. However, it appears that some executives may be abusing this perk. In addition, SEC rules require the honest reporting of personal usage by executives. Moreover, personal use of a corporate jet is a taxable benefit. If companies, as the Wall Street Journal suggests, are under-reporting the personal use of these jets, then shareholders and taxpayers rightfully should be upset.