The new SEC compensation rules state that companies have to now be clearer with where their money is administered, even if it involves benefit packages for their CEO’s. In short, shareholders want to know what the executives are making and spending – even if it involves their golf outings.

As for shareholders, they have a right to know what the CEO’s are spending their benefit packages on. Such packages may include golf club memberships, life insurance benefits, automobile and parking allowances, personal security, Internet allowances, and personal trips with the use of the corporate jet. Shareholders do spend a pretty penny on the leaders of their shares and companies. For example, Starbucks shareholders spent $1.23 million on perks last year. Perks for overall top US corporations are covered by a few good hundred thousand dollars per executive per year.

As if this wasn't enough, many companies actually provide extra money or a "gross up" benefit to cover the taxes associated with the perks. The issue arises when the shareholders and general public are unhappy with how much CEO’s are receiving yearly in perks and bonuses. However, the board members are the ones in control of the financial outcome of the perks and benefits for their CEO’s – they are approving such benefit packages. Traditionally, Boards have just approved these benefits under the table, but now that they are more apparent in filings, they may face increased investor scrutiny.