Investment bank and financial services firm Jefferies Financial Group Inc (NYSE:JEF) has posted the proxy materials for its 2022 Annual Meeting of Shareholders. The documents include detailed data on the compensation of Jefferies’ management, including information about their use of the corporate aircraft.

For 2021, Jefferies’ two top executives, Rich Handler (CEO) and Brian Friedman (President), each earned cash-incentive compensation of $12 million, restricted stock units (RSUs) worth $9 million on the grant date, and performance stock units (PSUs) with a target of $9 million on the grant date based on the performance of Jefferies Financial Group, including Jefferies Group, and on their individual performance measured by the Committee’s performance criteria of Financial Performance, Capital Allocation, Business Strength, and Leadership, Culture and Values.

Certain of Jefferies’ named executive officers benefit from personal use of Jefferies’ aircraft. In addition, family members of the named executive officers may, in certain circumstances, accompany the named executive officers on business as well as personal travel on Jefferies’ aircraft, resulting in additional costs. Reported costs for personal use of Jefferies aircraft consist of the incremental costs incurred as a result of personal flight activity, including fuel, repairs, maintenance, personal supplies and meals and flight crew meals and lodging. Incremental costs do not include depreciation, hanger rent, insurance, flight crew salaries and benefits and other fixed expenses that would have been incurred regardless of whether there was any personal use of Jefferies’ aircraft.

For 2021, the total amount of Jefferies’ disallowed tax deduction resulting from the personal use of its aircraft by Messrs. Handler, Friedman, Steinberg and their guests was approximately $4 million representing an approximate $1 million increase in tax expense and cash taxes.

For security purposes, Messrs. Handler, Friedman and Steinberg receive the use of drivers, cars and other transportation benefits for business as well as personal use. Disclosed amounts for personal use of drivers, cars and other transportation benefits for each executive are derived based on an allocation of the total cost of driver compensation (including bonus and benefits), parking costs, vehicle depreciation and all other vehicle operating costs.

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