Jun 6, 2013, 6:37am EDT UPDATED: Jun 12, 2013, 11:56am EDT
Sky-high perk: For First Marblehead CEO Dan Meyers, it pays to fly
Managing editor/online vertical products and research-
Boston Business Journal
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First Marblehead Corp., the Boston-based student-loan concern that has rebounded after seeing its core business crumble last decade, is showing its gratitude to CEO Daniel Meyers for a job well done by absorbing $507,294 in costs he incurred last year while using his private jet for non-business travel.
According to financial filings, Meyers is entitled each year to 75 hours of reimbursable travel costs when using his privately owned 2005 Gulfstream Aerospace GIV-X for personal trips. The perk was added to the CEO’s compensation agreement with the company last year.
Meyers received total compensation of $1.34 million in 2012, including $820,000 in base salary. First Marblehead (NYSE: FMD) did not respond to a call or email seeking comment. Travel logs of Meyer's Gulfstream were not available, per his request to aviation regulators.
But that wasn’t all First Marblehead paid to cover travel aboard Meyer’s Gulfstream. In regulatory filings, the company said it paid another $1.26 million in fees to Sextant Holdings, a Massachusetts entity that officially owns the jet and lists Meyers and First Marblehead Chief Operating Officer Seth Gelber as senior principals.
Gelber, who received $719,558 in compensation from First Marblehead in 2012, also serves as the president of Sextant Holdings. He received $60,000 in compensation for his role at Sextant in 2012, the company said.
First Marblehead said its fees to Sextant cover business-related travel aboard Meyers plane and that the outlays account for “less than half of (Sextant’s) actual expenses in operating the aircraft.”
Sextant was founded in 2005. The company’s original headquarters was a penthouse at the Ritz Carlton in Boston that was purchased by Meyers for $5.7 million in 2003, accord