Survey Results: "What is a Perquisite?"

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): (Total responses: n=279)

(select only one)
n=118 (42.29%) Definitely a perk
n=73 (26.16%) Leaning toward a perk
n=48 (17.20%) Leaning toward not a perk
n=40 (14.34%) Definitely not a perk

2. Spousal/family member tag-along on corporate plane where executive is flying for personal reasons (assume no incremental cost of tag-along): (Total responses: n=278)
(select only one)
n=213 (76.62%) Definitely a perk
n=24 (8.63%) Leaning toward a perk
n=14 (5.04%) Leaning toward not a perk
n=27 (9.71%) Definitely not a perk

3. Executive use of corporate plane for outside board meetings (i.e., director of another company): (Total responses: n=276)
(select only one)
n=167 (60.51%) Definitely a perk
n=61 (22.10%) Leaning toward a perk
n=26 (9.42%) Leaning toward not a perk
n=22 (7.97%) Definitely not a perk

4. Outside director's use of corporate plane to attend company's board meeting (i.e., picking up directors for meetings): (Total responses: n=276)
(select only one)
n=25 (9.06%) Definitely a perk
n=32 (11.59%) Leaning toward a perk
n=52 (18.84%) Leaning toward not a perk
n=167 (60.51%) Definitely not a perk

5. Executive use of corporate plane to attend a meeting of the board/trustees of a charitable organization: (Total responses: n=276)
(select only one)
n=140 (50.72%) Definitely a perk
n=80 (28.99%) Leaning toward a perk
n=38 (13.77%) Leaning toward not a perk
n=18 (6.52%) Definitely not a perk

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: (Total responses: n=273)

(select only one)
n=102 (37.36%) Definitely a perk
n=77 (28.21%) Leaning toward a perk
n=51 (18.68%) Leaning toward not a perk
n=43 (15.75%) Definitely not a perk

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: (Total responses: n=270)
(select only one)
n=178 (65.93%) Definitely a perk
n=69 (25.56%) Leaning toward a perk
n=17 (6.30%) Leaning toward not a perk
n=6 (2.22%) Definitely not a perk

3. Spousal golf and other extra services, such as day travel or spa services, for when the board is in a formal meeting: (Total responses: n=273)
(select only one)
n=215 (78.75%) Definitely a perk
n=37 (13.55%) Leaning toward a perk
n=12 (4.40%) Leaning toward not a perk
n=9 (3.30%) Definitely not a perk

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: (Total responses: n=271)

(select only one)
n=72 (26.57%) Entire amount of country club expenses is a perk
n=129 (47.60%) Allocate incremental cost of those few personal uses as a perk
n=61 (22.51%) Allocate all expenses, including a portion of the membership cost on some basis, as a perk
n=9 (3.32%) Not a perk

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: (Total responses: n=272)
(select only one)
n=32 (11.76%) Entire amount of ownership expenses is a perk
n=119 (43.75%) Allocate incremental cost as a perk (eg. cost of refreshments)
n=99 (36.40%) 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)
n=22 (8.09%) Not a perk

3. Membership in airline club paid by company that provide facilities at airports, if the club is also used by executive during personal travel: (Total responses: n=271)
(select only one)
n=38 (14.02%) Entire amount of club expenses is a perk
n=94 (34.69%) Allocate incremental cost as a perk (eg. cost of refreshments)
n=54 (19.93%) Allocate all expenses, including a portion of the membership cost on some basis, as a perk (eg. valuation based on percentage of personal use)
n=85 (31.37%) Not a perk

4. Relocation expenses for existing executive that the company has required to relocate: (Total responses: n=271)
(select only one)
n=48 (17.71%) Definitely a perk
n=21 (7.75%) Leaning toward a perk
n=36 (13.28%) Leaning toward not a perk
n=166 (61.25%) Definitely not a perk

5. Relocation expenses for newly hired executive, extended to induce the executive to accept an employment offer: (Total responses: n=271)
(select only one)
n=63 (23.25%) Definitely a perk
n=32 (11.81%) Leaning toward a perk
n=31 (11.44%) Leaning toward not a perk
n=145 (53.51%) Definitely not a perk

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: (Total responses: n=271)
(select only one)
n=95 (35.06%) Definitely a perk
n=106 (39.11%) Leaning toward a perk
n=44 (16.24%) Leaning toward not a perk
n=26 (9.59%) Definitely not a perk

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? (Total responses: n=190)

(select only one)
n=84 (44.21%) Yes to most
n=53 (27.89%) Yes to a few
n=21 (11.05%) Maybe for a few
n=32 (16.84%) No