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US company spending on private jets for personal use hits 10-year high

US companies spend the highest levels of private jets for personal use by CEOs and chairs in the last decade, as many companies have relaxed restrictions on using them for pandemics. Reached.

According to ISS Corporate Solutions, a division of investment advisors’ institute shareholder services, it was up 35% in the 2021 S & P 500 group to $ 33.8 million. This is the highest amount since 2012.

Facebook parent Meta and aerospace group Lockheed Martin are among the biggest spenders as many companies have relaxed rules regarding the use of private jets for fear of being infected with Covid-19 on commercial flights. did.

Meta spent $ 1.6 million on CEO Mark Zuckerberg’s private jet, and Lockheed spent $ 1.1 million on the flight of boss James Tycklet.

Lockheed Martin said he increased his private jet spending last year, “in the light of the Covid-19 pandemic.”

This includes $ 353,303 for Taiclet’s personal travel and commuting to out-of-state and dead-end flights when the aircraft is used for one-way charters, Lockheed said in a regulatory filing this year. Said.

The average amount spent on CEOs and chairs for the use of private jets increased 36% last year due to increased spending to boost private jet operators such as New York-based Wheels Up and Jettly. It is now $ 170,660.

Wheels Up reported revenue and passenger growth earlier this year, but Jettly experienced a surge in demand.

Justin Crabbe, CEO of Jettly, said “it’s very difficult to return to a flight commercial” after the group offered a private flight to executives.

Other companies have also said they have relaxed restrictions on private jet travel for personal use during pandemics.

Illinois-based credit card company Discover Financial, which typically limits additional benefits for executives, has decided to pay CEO Roger Hochschild and his family to use private jets on all trips. He said he changed.

The Board approved this policy until 2022, spending $ 153,234 on Hochschild’s private flight in 2021, starting at $ 12,168 in 2020.

Snack maker Monderes said he temporarily allowed non-Chief executives to fly on private jets during an international private travel pandemic. The company’s jet spending increased 33% to $ 214,466 in 2021, compared to $ 160,843 in 2020.

Jet spending data show that companies continue to pay leaders in other ways, even though some executives have abandoned their base salary at the start of the pandemic.

It is also backed by criticism from high-value investors. Large investors, such as the head of the Norwegian $ 1.2 trillion oil fund, have criticized the large salary package as a whole.

Shareholder support for executive compensation at Meta was only 86% at this year’s annual shareholders meeting, the lowest total in the company’s history.

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