Gold star Fridays…

March 25, 2005

Judging by the recent round of proxies, Gulfstream usage is up — way up — at many companies which routinely allow executives, and sometimes even directors and their wives, to use the company jet for personal hops. After all, flying coach is such a hassle these days. But in its recent proxy, Johnson & Johnson (JNJ) seems to be poking some fun at all of these companies. In their proxy, J&J notes that “many other peer corporations require their chairman and certain other executive officers to use company aircraft for personal as well as business travel. As a result, at those corporations, personal use of company aircraft by the chairman and those other executive officers is not treated as a perquisite or personal benefit and the costs associated with such personal use of company aircraft are not reported in the proxy statement.” That’s proxy-speak for “stop trying to fool investors by hiding the true costs of the chairman’s weekend trip to Mustique.” And it deserves a gold star.

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