Bottoms up!
Sure it’s before noon on a Tuesday, but let’s lift our glasses to the executives at UST (UST), who in the proxy they filed yesterday, disclosed a very interesting perk: a wine allowance!
Though the amounts aren’t all that significant — the top dollar is $6,500 for Chairman and CEO Vincent Gierer and that seems to also include the cost of security services, no doubt to protect the wine cellar stocked with $8.99 bottles of Columbia Crest Merlot — it’s the idea of a wine allowance that seems a bit amusing. And the wording, which says the wine allowance is “to foster the use of the company’s wine products at events they host” seems interesting as well. Wouldn’t executives want to do this anyway? Keep in mind that Gierer’s total compensation last year was over $6 million, so presumably he can afford to buy wine without an allowance. UST executives aren’t the only ones drinking up. Non-employee directors also get a $5K “wine allowance” as well.
It’s not clear if this is a new perk or just a new disclosure. To be fair, the amount in question doesn’t seem to warrant disclosure, since it’s under $10K a pop, so UST deserves some credit. Thanks to a footnoted regular for pointing this one out to me. And if you come across an interesting tidbit buried in the filings, please let me know, since it’s simply impossible for me to get to every filing.
|
Posted in |
 5 Comments » |
RSS
February 27th, 2007 at 11:17 am
It must be part of their health awareness plan due to the riboflavins. At $9 a bottle, I don’t think I could drink the 333 bottles of wine a year. ($5,000 * .60/9).
The bizzare part is I have a weird picture of a bunch of guys chewing Skoal (their primary business) and drinking white wine.
February 27th, 2007 at 12:02 pm
Interesting. On UST and booze, there’s a big locker at the DC Capital Grillie with the name UST on it. I’ve not pressed my nose against the bars to see what’s in there, but given the price of bottles at that place, I wonder what the REAL wine bill is for execs at UST. Business dinners at the CG won’t be cheap, even without the wine.
February 27th, 2007 at 5:37 pm
Try comparing theUST ‘allowance” to DEO execs and employees. Should be interesting.
March 1st, 2007 at 10:11 am
Lord Blyth of DEO received $85,000 ,or so, part of which was for “product allowance” ,something most DEO employees receive,as well as the open bar in most locations. One wonders if the Lord slams down a few at the bar with commoners.
March 8th, 2007 at 2:36 pm
Wine has been known for centuries to enhance business acumen. Let’s hope this is a trend on the upswing.