March 1, 2005

March Eminders Now Available

Here is the March issue of our monthly email newsletter. To receive this newsletter each month by email, input your email address in this form.

Valuation of Personal Usage of Corporate Aircraft and The Jobs Act

In response to questions from many members of, we have added a new practice pointer from Stewart Lapayowker regarding the impact of the Jobs Act on airplane use. Stewart’s pointer specifically addresses:

– did the Jobs Act change the method for computing the value of the perquisite to be included in the employee’s income? and

– did the Jobs Act change the deductibility of expenses associated with the operation of the corporate aircraft for entertainment purposes and, if so, how does one compute the expense subject to the disallowance?

We have also added additional resources on airplane use to the “Airplane Use” Practice Area.

House Democrats Don’t Like Exclusion of Shareholder Access Proposals

In response to Corp Fin allowing the exclusion of three shareholder proposals that parallel proposed Rule 14a-11 – in a February 24th letter to the SEC Chairman – six Democrats, including Rep. Barney Frank (D-Mass.) and Rep. John Dingell (D-Mich.) questioned whether the SEC was backing away from its proposed shareholder access framework. According to the WSJ, the letter says: “We are writing to express our disappointment about the recent decision made by the staff. We are concerned that this decision may indicate the commission’s lack of commitment to passing a proposal that would empower shareholders by giving them the limited ability to nominate directors.”

Better Than Splitting the Baby?

On Sunday, the Washington Post reported, “SEC Chairman Donaldson handed down his decision in the most contentious issue dividing members of the Securities and Exchange Commission. No, it’s not executive compensation or the accounting treatment of stock options. It is which commissioner, Cynthia A. Glassman or Roel C. Campos, will get the only other office with the Capitol view when the agency moves into its new digs next to Union Station next month. Neither, it turns out. Donaldson decreed the space will serve as a common conference room.” Probably a little smarter than my idea to have the Commissioners share the coveted space (and here is Bloomberg’s more extensive article on the resolution).