A CEO pay amounts to $10.9M a year plus $364,000 perks. This means that a CEO earns 319 times more compared to a regular employee. The pay gap is so enormous that Kenneth Feinberg, an overseer of compensation program, said that boss and workers gap is not a gap anymore, it is a chasm.

Americans are angry about the compensation, what about the perks that amounts to $364,000 per year? In this time of decline, what would be an appropriate and ethical perks for a CEO?

Perks are rewards given to CEO. This however is not due to good performance but to suggest status. This is to encourage the company's top official to work more efficiently.

A survey by Compensation Resource Inc said that the following are the top 7 perks of all industries given to their CEO:

1. Holiday with parties and gatherings

2. Company car

3. Severance contract

4. Membership for Country club

5. First-class air travel

6. Financial counseling

7. Spouse Travel

These luxurious executive perks disgust the working class. This makes employees wonder if these lavish perks offset their potential earnings. This kind of issue is a critical challenge to HR as these extravagances alienate workers.

Perks Extravagance

Perks can be more luxurious like private planes, luxury apartments, exotic cars and unsparing retirement plans. However, extravagant perks are hidden from the public. Ex-Vivendi and Global Crossing gave $17M apartment and corporate jet to their CEOs with the public knowing about it. This resulted to raising eyebrows and questions like what are the executive perks for.

Executive perks is a part of compensation. Its role is ever changing but its purpose is to say that the CEO status is symbolic making outsiders know they are dealing with a person of substance. It is a status co.

It is also a way of encouraging executives to be competent and efficient. Executives need to work fast. "For them, wasted time is also wasted money" said Professor David B. Balkin, Ph.D., of the Leeds School of Business at the University of Colorado, Boulder. This is the reason why they are given expensive car and jet plane. This will help to make their job done fast and efficiently.

However, needs and wants can sometimes interchange that is why executive must never be allowed to demand their own perks. This must be HR job to set the line of which is appropriate.

Cost Cutting

In a time of decline, companies' main priority is cost-cutting expenses. Others do job cuts while rewarding top executive bonuses and perks. This kind of action is deemed inconsiderate and not a very wise HR move. The wise decision would be to cost cut company expenses on perks to avoid more layoffs. Luxurious perks must be put aside until the economy stabilizes. This is ethical as well as practical.