SOURCE: The Corporate Library

March 15, 2007 13:35 ET

Executive Perks: Have Shareholders Been Paying All Along and Just Didn't Know About It?

The Corporate Library Finds Revelations in New SEC-Mandated Disclosures

PORTLAND, ME -- (MARKET WIRE) -- March 15, 2007 -- Research from The Corporate Library shows that the new benefits disclosures suggest that many executive perks may have been hidden previously from shareholders' view.

The study shows that the disclosed costs of providing executive benefits and perquisites has increased on average by more than 130% between the 2005 disclosures and those made in 2006.

"It isn't so much that shareholders didn't know how much these perks were costing them -- they didn't even know they were being provided," said Paul Hodgson, The Corporate Library's senior research associate for executive compensation.

Analysis is based on figures taken from the 2006 and 2007 proxy statements of 100 companies which have recently filed under the new SEC disclosure regulations. It clearly shows that, at most companies, poor disclosure in the past has significantly masked the levels of perquisite provision and their associated costs.

To identify what lay behind some of the increases, Mr. Hodgson examined in detail the disclosures at Merck, Applied Materials, T. Rowe Price and NSTAR among others. Although in some cases there was a specific reason for the increase, in general the rise in cost appears to be due to incomplete disclosures in the prior year.

The complete analysis is available from The Corporate Library's online store at www.thecorporatelibrary.com.

About The Corporate Library

The Corporate Library, headquartered in Portland, Maine, is the leading independent resource for corporate governance and compensation information and analysis of public U.S. corporations. Founded in 1999, it continues to be the authority on corporate governance matters, as evidenced by the frequency with which key media, business and government leaders seek its unique insight and objective perspectives. Additional information on The Corporate Library and its suite of online corporate governance data and analysis products can be found on its website at www.thecorporatelibrary.com.

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