Soon, using company jets for non-business purposes won't fly for CEOs.
Recent changes to the reporting requirements for the U.S. Securities and Exchange Commission (SEC) could see companies held to account if they fly their private jets for non-business use.
Reporting by the National Business Aviation Association (NBAA) covered updates from the organization's annual Tax, Regulatory & Risk Management Conference, highlighting the importance of transparency from businesses when it comes to company perks.
The rules are hazy around what counts as a reasonable perk of the job, versus what is an example of CEOs unfairly taking advantage of their position.
The lead aviation counsel for Walmart, Sean Fitzgibbons, commented per the NBAA, "There's really no specific guidance on what to include [in the reports]."
However, inaccurate reports may result in fines or even criminal charges for what the NBAA calls "extreme violations."
From obscuring the transparency around pollution to not selling tickets for basically empty planes to exploit legal loopholes or receiving massive tax breaks, airlines and private jet users frequently come under fire for their damaging environmental impact.
We all know that flying is a major polluter, but the impact of flying a private jet is drastically more harmful. The International Council on Clean Transportation estimated that private jets produced up to 19.5 million tons of planet-warming gas pollution in 2023, which was more than every single flight departing from London Heathrow Airport in the same time period.
While everyday people do their best to look after our environment, billionaires and CEOs cause immense harm. The wealthiest 10% of Americans are responsible for 40% of the country's pollution, with billionaires releasing a million times more carbon pollution than the average person.
Holding this small portion of society to account and making it harder for individuals to exploit the system can only be a positive step towards a cleaner future for everyone.
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In an article by Gunderson Dettmer, the acting director of the SEC's Enforcement Division, Sanjay Wadhwa commented, "Public companies have a duty to comply with their disclosure obligations regarding executive compensation, including perks and personal benefits."
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