Municipal governments aren't alone when it comes to providing vehicles for the use of their top employees. Private companies do it, too, either in the form of an owned or leased car, or as a transportation subsidy, said Marick Masters, a professor of business at Katz School of Business at the University of Pittsburgh. At the same time, some large corporations have been reducing the size of the auto fleets to help reduce 'what might be viewed as an unnecessary expense,' he said. 'You are seeing things like more mileage reimbursement and assistance in setting up car pools,' Masters said. The university, for example, provides free Port Authority of Allegheny County passes to its workers, he said. 'There has been a pushing down of this benefit to more employees,' he said. Pittsburgh-based Mellon Bank, which has about 10,500 employees, provided cars to just 19 of its top executives last year, spokesman Ron Gruendl said. The cars cost about $140,000. 'Cars are provided to our upper-, most-senior management people who set policy,' he said, as well as regional presidents who are responsible for visiting branches and meeting with clients. H.J. Heinz Co. provides vehicles for its high-level executives, but Debbie Foster, spokesman for Heinz corporate headquarters, would not give further details. 'We normally don't discuss it further than that,' she said. In response to an inquiry, US Airways provided a proxy statement that showed three of its highest-ranking officers received compensation for automobile expenses. William Cressman, a spokesman for the Internal Revenue Service in Philadelphia, said if an employee uses a company car purely for company business, it is not considered part of his annual compensation. 'It is no different than using a company telephone for company business,' he said. Any personal use of that vehicle constitutes a taxable, noncash, fringe benefit, Cressman said. The employer determines the value of this benefit, and it must be reported as income on federal income-tax returns.

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