Once again I was struck by an article in the Wall Street Journal, Companies Take Big Hits on Relocation as Executives' Homes Languish on Market. Qwest loses $1.8 million on CEO's house; angry shareholders are seeking recourse. (May 14, 2008, by Joann S. Lublin) The article talks about corporate policy that allows executives to dump their expensive homes on their companies when they relocate which then must sell them, often at a substantial loss. About 68-percent of 203 surveyed companies reimburse some or all of a staff member's loss on a home sale, according to data cited in the article. One CEO stuck his company with two homes for sale and "is getting housing allowances from the company" for both. We aren't talking $500K homes, but $8, 9, 10 million dollar homes.
But the a quote is what struck me most -- "The perquisite is 'a dramatic example of corporate welfare for the top brass.'"
Nuff said.
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