Add Hewlett-Packard to the list of companies reining in the number of corporate perquisites that once defined the high life in Silicon Valley. In a Monday filing with the Securities and Exchange Commission, the company said it had changed its policy covering personal use of corporate aircraft.
Here's the fine print:
HP will no longer provide its executive officers with a gross-up to cover the individual income tax incurred when corporate aircraft are used for personal purposes (including spousal travel on business trips).
Previously, the policy provided that the chief executive officer would receive a gross-up for the tax associated with the value of the first 25 hours of personal usage (which usage could have included his spouse and other guests) during each fiscal year. The policy also provided that other executives would receive a gross-up for the tax associated with the value of spousal travel on business trips if the spousal travel was requested by HP.
The company made its announcement in supplement to its annual proxy statement, The "gross-ups" refer to additional pay that goes to compensate what an exec might pay Uncle Sam in taxes for the use of corporate aircraft.