Charge it!

images4.jpegJudging by the preliminary proxy that Mastercard (MA) filed on Tuesday, 2006 must have been a good year for home security firms in suburban NYC, where the company is based. That’s because according to the proxy, several Mastercard executives got what seems to be — judging by the cost alone — a pretty extensive system paid for by the company.

One of the more interesting things in the footnote, which was presented in Enron Beelzebub typeface, is that former Chief Risk Officer Chris Thom, who retired at the end of January (though the release says October), spent the most: $54.8K on installation and monitoring according to the proxy. Also interesting is that while the security perk is a new disclosure — the company says that “for security reasons, it pays for home security systems and monitoring for a number of the named executive officers” — President and CEO Robert Selander only spent a modest $3,100 on his system last year. Rounding out the list are CFO Chris McWilton, who rang up $42K in home security costs and $11K for Chief Operating Officer Alan Heuer. This is in addition to perk allowances — ranging from $56K to $25K for each executive.

The “all other comp” also had an interesting — and lucrative — disclosure on a program called VAP that was phased out nine years ago. Though the company has mentioned the VAP program in earlier filings, this appears to be the first time that the company is providing details on how much money was involved and the amounts are substantially larger than the executives’ salaries. For example, Chief Operating Officer Alan Heuer received $1.9 million — more than twice his base salary of $750K — and Selander received $1.8 million under the “Value Appreciation Plan”.

Apologies for co-opting Mastercard’s advertising tag-line here, but that’s priceless!