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Survey Results: "What is a Perk?"

Responding to numerous members who are grappling with "what is a perk?," we have compiled items/thresholds to include in this online survey to help gauge what consensus there might be among practitioners in this area. Obviously, this is an unscientific survey - and the SEC Staff might disagree with any "consensus" that might be reached.

Please respond to the survey below (and know that your identity will remain anonymous as we can’t identify you when you respond).

A. Company Airplane Use

1. Spousal/family member tag-along on corporate plane where executive is flying for business reasons (assume no incremental cost of tag-along): (select only one)

  Answer Responses Percent  
Definitely a perk 64 52.0%
Leaning toward a perk 24 19.5%
Leaning toward not a perk 17 13.8%
Definitely not a perk 18 14.6%
2. Spousal/family member tag-along on corporate plane where executive is flying for personal reasons (assume no incremental cost of tag-along): (select only one)
  Answer Responses Percent  
Definitely a perk 107 87.0%
Leaning toward a perk 6 4.9%
Leaning toward not a perk 3 2.4%
Definitely not a perk 7 5.7%
3. Executive use of corporate plane for outside board meetings (i.e., director of another company): (select only one)
  Answer Responses Percent  
Definitely a perk 73 59.8%
Leaning toward a perk 24 19.7%
Leaning toward not a perk 17 13.9%
Definitely not a perk 8 6.6%
4. Outside director’s use of corporate plane to attend company’s board meeting (i.e., picking up directors for meetings): (select only one)
  Answer Responses Percent  
Definitely a perk 8 6.6%
Leaning toward a perk 6 4.9%
Leaning toward not a perk 30 24.6%
Definitely not a perk 78 63.9%
5. Executive use of corporate plane to attend a meeting of the board/trustees of a charitable organization:(select only one)
  Answer Responses Percent  
Definitely a perk 72 59.0%
Leaning toward a perk 27 22.1%
Leaning toward not a perk 19 15.6%
Definitely not a perk 4 3.3%
B. Other Spousal/Family Member Issues

1. Travel costs associated with spouse attendance with directors at annual board retreat/meeting where all spouses are invited: (select only one)

  Answer Responses Percent  
Definitely a perk 51 42.9%
Leaning toward a perk 29 24.4%
Leaning toward not a perk 25 21.0%
Definitely not a perk 14 11.8%
2. Travel costs associated with spouse attendance with directors at a board meeting where spouses are welcome, but not formally invited, and only a few spouses attend: (select only one)
  Answer Responses Percent  
Definitely a perk 84 69.4%
Leaning toward a perk 25 20.7%
Leaning toward not a perk 7 5.8%
Definitely not a perk 5 4.1%
3. Spousal golf and other extra services, such as day travel or spa services, for when the board is in a formal meeting: (select only one)
  Answer Responses Percent  
Definitely a perk 104 85.2%
Leaning toward a perk 11 9.0%
Leaning toward not a perk 5 4.1%
Definitely not a perk 2 1.6%
C. Mixed Business and Personal Use

1. Country club membership paid by company that is not used exclusively for business purposes, if the membership is used a few times by the executive or a family member for personal reasons: (select only one)

  Answer Responses Percent  
Entire amount of country club expenses is a perk 26 21.5%
Allocate incremental cost of those few personal uses as a perk 62 51.2%
Allocate all expenses, including a portion of the membership cost on some basis, as a perk 29 24.0%
Not a perk 4 3.3%
2. Luxury box paid by company that is not used exclusively for business purposes, if the box is used a few times by the executive or a family member for personal reasons: (select only one)
  Answer Responses Percent  
Entire amount of ownership expenses is a perk 7 5.8%
Allocate incremental cost as a perk (eg. cost of refreshments) 61 50.4%
Allocate all expenses, including a portion of the membership cost on some basis, as a perk (eg. by dividing number of events box is paid for in order to allocate the cost on a per event basis) 44 36.4%
Not a perk 9 7.4%
3. Membership in airline club paid by company that provide facilities at airports, if the club is also used by executive during personal travel: (select only one)
  Answer Responses Percent  
Entire amount of club expenses is a perk 13 10.7%
Allocate incremental cost of those few personal uses as a perk (eg. cost of refreshments) 49 40.2%
Allocate all expenses, including a portion of the membership cost on some basis, as a perk (eg. valuation based on percentage of personal use) 21 17.2%
Not a perk 39 32.0%
4. Relocation expenses for existing executive that the company has required to relocate: (select only one)
  Answer Responses Percent  
Definitely a perk 30 24.8%
Leaning toward a perk 13 10.7%
Leaning toward not a perk 11 9.1%
Definitely not a perk 67 55.4%
5. Relocation expenses for newly hired executive, extended to induce the executive to accept an employment offer: (select only one)
  Answer Responses Percent  
Definitely a perk 37 30.6%
Leaning toward a perk 15 12.4%
Leaning toward not a perk 13 10.7%
Definitely not a perk 56 46.3%
6. CEO’s assistant (whose compensation is paid for entirely by company) who spends 60% of his time taking care of personal tasks (such as maintaining the CEO’s personal calendar, paying personal bills, etc.) and the other 40% is work-related: (select only one)
  Answer Responses Percent  
Definitely a perk 42 34.7%
Leaning toward a perk 35 28.9%
Leaning toward not a perk 29 24.0%
Definitely not a perk 15 12.4%
D. New Questions Added After Initial Survey Posting

1. Would your answers change to the above questions if the executive paid the full incremental cost to the company? (select only one)

  Answer Responses Percent  
Yes to most 71 59.7%
Yes to a few 23 19.3%
Maybe for a few 12 10.1%
No 13 10.9%