A vehicle offered to an employee as part of a remuneration package. Company cars may be used by their recipients on company business but they are also available for private use and are an important feature of remuneration for managers and professionals in the UK. Company cars have become less tax efficient in recent years but they remain an attractive benefit because the burden of maintenance and replacement is assumed by the employer. In addition, a company car is a potent badge of status and its value and power are an indicator of career success in many occupations. [See tax efficiency.]
Subjects: Human Resource Management.