Allowances

A USA TODAY analysis of corporate filings finds dozens of CEOs and senior-level execs pocketing up to $84,000 a year — 70% higher than the median U.S. household income of $49,455.

Some companies say cash allowances are easier to administer than specific payments for company-provided perks, such as cars. At other companies, executive allowances are part of compensation packages that include perks ranging from private use of corporate aircraft to tax assistance.

The allowances are a little-known but longstanding sweetener to executive pay packages expected to hit records this year, bolstered by the economic recovery, a robust stock market and record corporate earnings. Governance experts say allowances should be terminated by all companies that offer them. "There's no reason for it,'' says Eleanor Bloxham of the Value Alliance. "Most of these people get enough to live on."

Among companies doling out allowances:

•United Technologies. Senior execs get flexible allowances equal to 5% of base salaries. That's worth $84,000 for CEO Louis Chênevert, who used $36,000 for a car lease. Chênevert's 2011 compensation: $22.8 million, plus $7.4 million in stock and options gains.

•C.R. Bard. CEO Timothy Ring got $65,000, plus $8 million in compensation and $15.3 million from options and vested shares. Other execs got $40,000, including CFO Todd Schermerhorn, who exercised options worth $25.6 million. The medical products marketer says allowances offset costs for company cars, financial planning and other perks.

•American Express. CEO Ken Chenault and other execs get $35,000. Chenault's 2011 comp: $22.5 million, plus $5.9 million from vested shares. Chenault's other perks — including use of company aircraft and local travel — cost $365,000. Spokeswoman Marina Norville says allowances have been in effect for years.

•Jack in the Box. CEO Linda Lang gets $66,500 a year; other execs, at least $45,000. The fast-food chain says allowances replace other perks and cover costs such as business use of personal cars and cellphones. Lang's 2011 compensation: $4.5 million, plus option gains worth more than $750,000.

Although small in respect to overall pay, allowances add up over time. Tyco International has spent about $2 million on allowances since their 2003 rollout, according to corporate filings. CEO Ed Breen got $70,000 in 2011 — on top of $14.9 million in compensation and $52.4 million from options and vested shares.

Tyco, Boston Scientific and vitamin marketer GNC, among others, cut allowances beginning this year. But they found other ways to cover them. Tyco awarded twice as much in stock — $140,000 to Breen alone. GNC raised salaries by up to $50,000. Boston Scientific, which gave $25,000 a year, doled out $75,000 in stock.

Compensation trackers say executives should skip the allowance. Says Michelle Leder of footnoted.com: "Most of us manage to pay for these things on our own. Why can't (executives) manage to on more significant salaries?"