HP to execs: Bye-bye to plane perks

Add Hewlett-Packard to the list of companies reining in the number of corporate perquisites that once defined the high life in Silicon Valley. In a Monday filing with the Securities and Exchange Commission, the company said it had changed its policy covering personal use of corporate aircraft.

Here's the fine print:

HP will no longer provide its executive officers with a gross-up to cover the individual income tax incurred when corporate aircraft are used for personal purposes (including spousal travel on business trips).

Previously, the policy provided that the chief executive officer would receive a gross-up for the tax associated with the value of the first 25 hours of personal usage (which usage could have included his spouse and other guests) during each fiscal year. The policy also provided that other executives would receive a gross-up for the tax associated with the value of spousal travel on business trips if the spousal travel was requested by HP.

The company made its announcement in supplement to its annual proxy statement, The "gross-ups" refer to additional pay that goes to compensate what an exec might pay Uncle Sam in taxes for the use of corporate aircraft.

[MacGuy1989]

I honestly think HP made a good move with this as for the fact companies cant afford to fork out money like they used to right now.

[mikekrause]

Maybe HP could've placed a higher priority on taking care of it's lower-paid employees above executive perks from the beginning. I would argue that by doing so, employee morale would have been better, the company would be posting better numbers as a result of higher employee morale, and they wouldn't have had to resort to cutting costs for exec per

[global-warming_is_BS]

Can't imagine why moral would be low. The company makes Billions, doesn't give out raises, increases hours worked without compensation and then gives everyone a pay cut. Welcome to the New Dell!

[mquag]

That headline is misleading. I assumed this would be a story about HP selling their plane. It's not.

Here's the real story about the company plane at HP: company execs can still use the company plane for personal travel, but now they have to pay the taxes on that benefit, which will be treated as compensation.

Wow... cry me a river.

HP... why not sell the jet and make the exec fly commercial, like mere mortals. Or, get a NetJets account for the gilded CEO who must not rub elbows with the unwashed masses.