Posted on 12/07/2004 7:33:42 PM PST by Flavius
NEW YORK (AP) -- Colgate-Palmolive Co., which announced Tuesday it is eliminating 4,400 jobs, disclosed in a regulatory filing that many of its top executives and officers are given allowance of up to $11,500 a year to spend on anything from pet sitters to running shoes to karate lessons to movie rentals.
ADVERTISEMENT The plan, called "Above and Beyond," was detailed in the consumer product company's quarterly filing in November with the Securities and Exchange Commission. The program has been in place since 1986 and covers 800 executives.
Under the plan, executives and officers can ask for reimbursement for exercise equipment, such as rowing or skiing machines, instructional videos, grooming and boarding services for pets, pet walking services and sitters, and veterinarian fees and visits.
Twenty top officers are each eligible for an $11,500 yearly allowance. Between 110 and 120 vice presidents are eligible for $10,000 allowances and 650 executives are eligible for allowances of either $2,000 or $4,000, depending on their rank. Not every eligible executive uses their allowance, the company said.
The Associated Press came across the program while searching SEC filings from thousands of companies for information about compensation for the use of personal trainers and other perks. Few companies detailed programs as extensive as that of Colgate. A story was prepared on Monday, before the corporate restructuring was announced, but the AP held it for a day while waiting for the company's response.
"Colgate has consistently tried to be fair and very modest in this distribution of any perquisites," said a company spokesman who asked not to be named. "A total of 800 people in the 'Above and Beyond' program have access to a modest, fixed stipend that can be used for home computers, baby sitters, fitness training, tax assistance and other benefits that can make their lives somewhat easier."
The plan replaced previous benefits that were unfairly distributed and, in some cases, excessive, the spokesman said. "This perquisite program, by design, puts Colgate well below the median for perquisite programs among a very large comparative group," he said.
Colgate, which makes Colgate toothpaste, Softsoap and Ajax cleaner, said it is cutting 12 percent of its work force and closing one third of its factories to improve profits by reducing manufacturing.
The company had $9.9 billion in sales last year and paid its top five executives $23.3 million in cash and stock, plus another $9.1 million in stock options. The company's highest paid executive, chairman and CEO Reuben Mark, made $10.4 million in salary, bonus and stock awards.
Some other expenses covered by the "Above and Beyond" plan, according to the SEC filing:
-- Equipment and special clothes for fishing, boating, hiking, golf, running and yoga; music, golf, tennis and self-defense lessons; opera, ballet, museum, concert and sporting event tickets for the executive and the executive's immediate family; movie tickets and video purchases or rentals
-- Membership for tennis, swimming, racquetball clubs or local YMCA-YWCAs and fitness centers. The company will also pay locker fees, court rentals and personal trainer fees.
Housekeeping, house painting, snow removal, swimming pool care, landscaping, gutter cleaning and chimney sweeping bills are covered because "routine household chores can consume precious personal and family time," according to the filing.
"To recognize the long hours spent in the office required by the responsibilities of your position," the plan covers personally selected artwork and desk accessories for the office, but executives are responsible for insuring those purchases.
Who do they think they are? Congressmen?
Oh. Well in that case...
Or maybe Union Officials?
If it's improper, shareholders will hold them responsible. That's the beauty of capitalism.
I bet Rush will be defending this one.....
What would have happend...
Colgate Executives,
Donate thousands of persk to Walther Reed Hospital
Colgate Executives
Donate thousands of dollars of extra cash to all memebers of the Armed forces serving overseas...
Wouldnt that be an nice article...
Nuh Greed is much more fun
If these execs are doing a good job its OK to reward them.
They are happy, they produce more, and they remain loyal.
A consulting group was hired to find out why morale among the company grunts sucked. They got many responses that the top executives acted like royalty. An example that came up repeatedly was the fact that execs got reserved parking places.
When asked about it, one of the top execs responded that reserved parking was supportive of the company value of "respect for employees."
The consultant did not understand and asked exec what he meant.
The exec explained that the employees who washed and gassed their company cars would not know where to find them if they did not have reserved parking slots.
True story.
I couldn't care less what, where, why, when or how Colgate pays its company's producers. It's none of my business. Just so they keep my toothpaste tube operable to the last glob.
Nor is it my business what AP chooses to pay its employees (probably not very much if this malcontent writer is any example).
Leni
Say what? Lots of people spend long hours without a prepaid babysitter, sports tickets, exercise equipment, blah bah. Now I don't feel bad about not buying colgate products in a couple of years. They charge almost 100% over other brands, and now we know what it's funding.
its not only colgate
A non-story isn't it?
Toothgate. Or is it Pastegate?
Precisely. It's Colgate's (shareholders') money to spend as they see fit.
Name them! C'mon,what do you know and when did you know it? :-))
I buy the house brand of toothpaste at my local grocery store.
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