Changing Attitudes toward Executive Perquisites: Indications from TARP

Andrew G. Carrothers, Liufang Yao  
(University of Prince Edward Island, Canada)

Abstract: This paper examines what happened to Chief Executive Officer (CEO) monetary and nonmonetary compensation at Standard & Poors (S&P) 500 firms in the years surrounding the 2008 financial crisis and in the context of the Troubled Asset Relief Program (TARP) legislation. We use novel data on executive perks at S&P 500 firms from 2006 to 2012. Overall, the results are consistent with lasting impact on nonmonetary compensation and temporary impact on monetary compensation.

Key words: perks; perquisites; TARP; executive compensation

JEL codes: C78, J33, G30