Extract from IDS Executive Compensation Review 305, July 2006

Fewer company cars on the road

Company cars may not be popular with environmentalists, but survey after survey seems to demonstrate they remain the benefit-of-choice for many employees. But with Government wishing to influence company car policy through the tax system the signs are that the picture may be changing. We take a look at the latest company car trends drawing on the most recent surveys from Monks Partnership and Alan Jones & Associates.

This article examines the impact of the Government’s tax policy on company car policies and finds evidence in recent surveys showing an increased take-up of cash alternatives. Tables in the article show median benchmark car values and average cash allowance levels by salary, as well as median cash allowance levels as measured by company turnover.