Which “Perks” Need to Be Disclosed Under the SEC’s Rules?

Perquisites – commonly known as “perks” – are special benefits that these executives get that the rest of the workforce doesn’t, and that confer some sort of personal benefit. They’re discloseable as compensation in a company’s proxy statement filed with the SEC.

If you’re new to this area, it can be challenging to determine what is a perk – and what is a true business expense – because you’ll come across a few items that have both a personal and a business element to them.

This confusion is compounded because the IRS rules about what is taxable doesn’t match the SEC’s rules about what is discloseable – the SEC has said that it doesn’t care about the discrepancy. How to sort all this out?

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