Spinning a continuous set of perks…

June 27, 2006

Spanish Broadcasting System, Inc. (SBSA) seems to be as free with its corporate perks as it is with its music.  SBSA, the largest Hispanic radio broadcasting company in the United States, filed its proxy last week and looks as though the CEO was the magic caller who won the contest.  For 2005, Raúl Alarcón, Jr., the CEO, President, and Chairman of the Board, received $96,648 for automobiles (including a driver’s salary), $34,916 for tax services and $10,835 for his life insurance policy.  At least there was no mention of payments for personal travel services in 2005 — Alarcón was reimbursed for $40k of those in 2003.

The generosity doesn’t stop at Alarcón, either.  The proxy also noted that Victor Aleman, Sr., Alarcón’s uncle, is employed by SBSA as a consultant. He was paid $76,500 during the fiscal year ended 2005, which included the use of an automobile.  Who isn’t participating in the perks?  That would be the shareholders, who have seen the stock’s price get cut in half during the past year.

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