Yahoo Finance Live anchors discuss the reasons why companies are spending more money to place CEO's and Chairman's on private jets.
JULIE HYMAN: All right, US companies are spending more money to put chief executives on private jets for personal use. Spending rose by 35% in 2021. That's the highest level since 2012. That luxury lifestyle is where we find Brian Sozzi's take today so. From the open road to the jet set, for sure. Wow.
BRIAN SOZZI: Wow is right. So some good data by ISS Corporate Solutions. And they found that it was a 35% increase among S&P 500 companies of those companies spending to put their CEOs and chairmen on private jets last year. It's most recent data.
Some of the biggest spenders were Meta and Lockheed Martin. Meta spent $1.6 million to put Mark Zuckerberg on a plane for his various personal travels. Number two on this list was Lockheed Martin and its CEO James Taiclet, who had spent $1.1 million for a private jet for personal use for its CEO.
Now, look, we've covered business for quite a long time. And private jet usage has always been a thorny issue inside of companies. It is usually had always been the first thing activist investors like to attack. You've seen a lot of companies pull back. But at the height of the pandemic, how else were you going to get around? If you're a corporate chieftain, you still had to go visit sites and talk to employees in some form, hence the increase here.
Also worth noting as well, the average amount spent for CEOs and chairmen last year on corporate and private jets, up 36% to $170,660.
JULIE HYMAN: Well, of course, the Waystar Waco deal almost fell apart over the private-- it's a fictional-- "Succession." Anybody watch "Succession?" They had to have their private jets.
BRIAN SOZZI: Well, there's my take. And as you can see in my private jet that I should be using a lot more nowadays. But my message is this to all those CEOs out there. I know you've had a great year of enjoying your private jet travel, but stay humble. Stay focused, because I think a lot of investors don't want to see this type of egregious use of corporate jets, especially in an environment where we might get a recession, things are slowing down, and you should be watching profits.
BRAD SMITH: Well, I'm sure the investors are not happy about that. But on the other side, the Wheels Up investors would love to see even more of this, perhaps. UP shares, though, down by about 82% over the past year.