MDs take the cash as Jag wins favour
06 November 2006
Author: John Mahoney
An enlightening survey carried out by the Institute of Directors has found fewer directors are prepared to accept a company car and prefer instead to opt for the cash alternative.
The R£ward survey interviewed 3815 directors at more than 1200 organisations and found 42% of MDs and CEOs in large companies chose to take cash instead of a company car. Last year the figure was nearer 30%.
The amount of cash claimed also rose from £9000 to £10,400.
The Institute says the shift due to the tax pressures. Peter Patterson, transport boss at the IoD said: "The tax system will continue to adapt in favour of cars with low carbon emissions, providing the opportunity for directors to reduce their tax and fuel costs by switching to more environmentally friendly vehicles".
The survey also uncovered the inroads Jaguar has made in senior staff circles. In large companies, the majority of MDs chose the British executive car over its German competition.