Can a corporation furnish a house for its CEO and other officers?

Answer 1

Yes.

Answer 2

Yes. This is usually negotiated as part of the compensation packages for the CEO and other chief X O's either at the point of hire or as bonus of performance. But these packages must be approved by the board and made known to shareholders (if the company is listed).

Sometimes, when senior managers are relocated, they may not wish to sell their properties (incur losses) or buy new properties immediately for the whole family. It is reasonable for the company to furnish a house for a period of time. It happens often that a manager is relocated to one place just to be moved again in another year. The company might have to absorb financial losses and all transaction fees.

Many managers sent overseas get generous housing subsidies because they don't give up their old houses. Two decades ago, when HR depts don't have international exposure, I know of a mid level manager being moved from a small town in Texas where he had a 4000 sq ft house to Hong Kong. He wanted to have an apt of the same size. Since most luxurious apts in HK are 2000 sq ft at most and right now cost US$6-10k per month, the HR dept approved such huge expenses and paid him extra and put it down as "hardship".