Extract from IDS Executive Compensation Review 318

Future directions for company cars in 2007

Company cars are still considered a key benefit for managers and professionals and this article looks at how organisations are changing their policies, whether it be replacing an existing provision with cash or moving back to more traditional-looking policies.

The report, based on 28 named case studies, looks closely at the two factors which appear to be concerning employers most. One is the upcoming new corporate manslaughter legislation which could mean that employers could face criminal prosecution for any accidents their company cars may be involved in, while the other is a proposed tax change that could have an impact on the popular employee car ownership plans. Information is given on the practice undertaken by various case studies and health and safety policies. Tables are provided on the featured organisations and the changes in cash allowance take-up by named organisation over the last five-year period. All data is taken from the ECR annual Company Car Policies 2007/08 available now.