The $65 Million Perk for CEOs: Personal Use of the Corporate Jet Has Soared

One of the flashiest executive perks has roared back since the onset of the pandemic: free personal travel on the company jet.

Companies in the S&P 500 spent $65 million for executives to use corporate jets for personal travel in 2022, up about 50% from prepandemic levels three years earlier, a Wall Street Journal analysis found. Early signs suggest the trend continued last year.

Overall, the number of big companies providing the perk rose about 14% since 2019, to 216 in 2022, figures from executive-data firmEquilar show. The number of executives receiving free flights grew nearly 25%, to 427.

Most companies report executive pay and perks in the spring.

Meta Platforms spent $6.6 million in 2022 on personal flights for Chief Executive Mark Zuckerberg and his then-lieutenant, Sheryl Sandberg—up about 55% from 2019, the Journal found. Casino company Las Vegas Sands spent $3.2 million on flights for four executives, more than double its annual expense in any year since 2015. Exelon, which owns Chicago’s Commonwealth Edison utility, more than tripled its spending on the perk since 2019.

Company jets have long symbolised corporate success and, to critics, excess. Companies typically say flying corporate is safer, healthier and more efficient. Some companies—including Cardinal Health, Raymond James Financial and Hormel Foods—added or expanded the perk in 2020 or 2021, citing pandemic health and safety concerns. Most spending growth came at companies already paying for personal flights in 2019.

Palo Alto Networks began subsidising personal flights for CEO Nikesh Arora in the year ended July 2022, spending about $650,000. Thattotal rose to $1.8 million in its most recent fiscal year, plus a further $286,000 to cover his tax bill for the perk, the cybersecurity company said in an October securities filing.

The company said in filings that its board requires Arora to fly corporate in response to a security consultant’s report. “There was a bona fide, business-related security concern for Mr. Arora and credible threat actors existed with both the willingness and resources necessary for conducting an attack on Mr. Arora,” it said.

Companies report spending on flights they can’t classify as business-related, including trips to board meetings for other companies or commuting from distant residences. Some give executives a fixed personal-flight allowance in hours or dollars, and require reimbursement beyond that.

The sums have little financial impact on most giant corporations, even when annual flight bills exceed a million dollars. Critics say the free flights indicate directors too eager to please top executives.

“The vast majority of S&P 500 companies do not offer this perk,” said Rosanna Landis Weaver, an executive-pay analyst at As You Sow, a nonprofit shareholder-advocacy group that has produced annual lists of CEOs it considers overpaid.

The Journal’s analysis reflects what companies disclose in securities filings, typically in footnotes to annual proxy statements. Federal rules generally require companies to itemise the perk for each top executive if it costs the company $25,000 or more in a year.

PepsiCo spent $776,000 on personal flights for five executives in 2022, double what it paid for the perk in 2019. Two-thirds of the spending subsidised flights by CEO Ramon Laguarta, who is required to use company aircraft for personal flights for safety and efficiency reasons. In an interview last spring, Laguarta said he sometimes ended business trips to Europe by flying to visit his mother in his native Barcelona. She died later in the year, in her 90s.

A PepsiCo spokesman said the company jet allows executives to reach remote facilities.

Personal jet use can draw investor and regulatory scrutiny. It contributed to the ouster of Credit Suisse’s chairman in 2022.

In June, tool maker Stanley Black & Decker settled Securities and Exchange Commission charges that it failed to disclose $1.3 million in perks for four executives and a director, mostly their use of company aircraft, from 2017 through 2020. In 2020, Hilton Worldwide Holdings settled SEC charges that it didn’t disclose $1.7 million in perks over four years, in part by underreporting costs for CEO Christopher Nassetta’s personal flights by 87%in two of those years. Hilton paid a $600,000 penalty.

Both companies settled without admitting or denying wrongdoing.

Stanley Black & Decker said it raised the errors with the SEC and settled without a fine. In 2022, Stanley Black & Decker reported spending nearly $143,500 on personal flights for former CEO James Loree and his successor, Donald Allan Jr., primarily to fly to outside board meetings or from second homes to work.

Hilton cited higher fuel prices in reporting about $500,000 in flights for Nassetta in 2022.

Spending on executives’ personal travel outpaced overall growth in business-jet traffic. Takeoffs and landings are up by about 19% since 2019, after dropping sharply in 2020, Federal Aviation Administration data show. Corporate spending on the perk rose 52%, the Journal found.

Higher fuel costs in 2022 contributed to the increase in spending, and there is little indication of a slowdown last year. Of the 15 S&P 500 companies that have reported spending on the perk in fiscal years ended in the second half of 2023, 10 said they increased spending, including three that didn’t report the perk a year earlier, securities filings show.

Sixteen companies that started paying for personal flights during the pandemic have since stopped. An additional 31 continued spending into 2022, with a median of $124,000. Accenture, Palo Alto Networks and concert promoter Live Nation Entertainment reported spending more than $500,000 apiece.

In 2020, Julie Sweet’s first full year as CEO, Accenture capped annual spending for her personal flights at $200,000, then doubled it the next year. Accenture raised the cap to $600,000 in its year that ended Aug. 31, when it spent about $575,000 on Sweet’s personal flights, the company said in a December securities filing.

In its filings, Accenture said it encourages Sweet to use company aircraft for personal travel, citing a security study the company commissioned.

Companies that provided the perk already in 2019 accounted for most of the recent growth in spending, the Journal found.

Meta, for example, spent nearly $11 million on Zuckerberg and Sandberg’s personal flights from 2015 through 2019, and a further $13.3 million over the next three years. Zuckerberg’s company-paid travel included trips on an aircraft he owns, which Meta charters for business, paying $523,000 in 2022. The Facebook owner stopped paying for Sandberg’s personal flights when she stepped down as a company employee in September 2022. She remains on Meta’s board.

Spokesmen for Meta and Sandberg declined to comment beyond Meta’s securities disclosures.

CEOs incurred most of the personal flight spending, making up half the executives receiving the perk in 2022 and two-thirds of the overall cost, Equilar’s data show.

At some companies, other executives are making up a bigger share of the cost. Four Norfolk Southern executive vice presidents accounted for just over half its roughly $370,000 in spending on personal flights in 2022, securities filings show. CEO Alan Shaw accounted for the rest. By contrast, the railroad reported subsidizing flights only for then-CEO James Squires in the five years through 2020.

Shaw may take as many as 60 hours of personal flights on company aircraft before reimbursing Norfolk Southern, the company said in its filings. Personal use of company aircraft by executives other than the CEO was infrequent, it added. Norfolk Southern didn’t respond to requests for comment.

—Jennifer Maloney contributed to this article.

A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.

The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.

The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.

GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.

“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.

The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.

Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.

According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.

“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”

The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.

Hunt said consumer brands offered a level of tangibility that many investors found appealing.

“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”

The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.

With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.

The $65 Million Perk for CEOs: Personal Use of the Corporate Jet Has Soared

Company spending on the benefit has climbed 50% since before the pandemic

With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.