Tax-Free C.E.O.'s

Forget the car and driver. The most popular perk in April is getting your company to cover your tab at the I.R.S.

Photoillustrations by Julie Teninbaum

Dennis Kozlowski, the high-living ex-C.E.O. of industrial conglomerate Tyco, wound up in the Mid-State Correctional Facility in Marcy, New York, after (among other things) skipping out on his taxes. The company is taking no chances with chairman and C.E.O. Edward Breen, whose contract gives him "tax-assistance payments"—gross-ups—"for New York State and City income tax on his Tyco-source compensation." Last year, that came to $330,200.

In June, Apple's iPhone buzz was deafening in Cupertino, California: All 21,600 Apple employees were handed free iPhones that were grossed up for either $250 or $379, presumably depending on whether they were given the 4-gigabyte or 8-gigabyte model.

Tyson Foods chairman John Tyson signed a 10-year contract last year that gives him tax gross-ups that include 120 hours of personal-jet use, a car (plus gas), and home internet access. The contract also requires the firm to retain Tyson as a 20-hour-a-month consultant for $300,000 a year—a part-time salary that's not grossed up.

Former Dallas mayor Ron Kirk is a board member of restaurant group Brinker International, best known for operating the casual-dining chains Chili's and Romano's Macaroni Grill. He received $1,022 to cover Awesome Blossoms, Bottomless Tostada Chips, and whatever else he may have ordered at Brinker bistros. Notes the proxy statement: "Our directors receive a complimentary dining card for use in our restaurants."

In 2007, Hewlett-Packard C.E.O. Mark Hurd received $34,835 to cover "the first 25 hours of personal usage of company aircraft," "storage costs and related moving expenses," and "meals associated with business travel ... in connection with events to which family members were invited."

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