Is a company-owned car a perk?

For purposes of the proxy statement filed with the SEC, is a company-owned car a perk?

It’s both a perk – and not. It depends on what the car is being used for at a particular time. If its for business, that time spent in the car is not a perk. If it’s personal, it is.

A company-owned car – or a car allowance – tends to be an industry-by-industry thing. It also tends to be more popular in more rural areas where executives have to drive longer distances.

The key here is what method does a company use to value the aggregate incremental cost of a company-owned car, so you can track the usage amount that is personal – so you know what amounts to disclose. The SEC gives you the flexibility to choose your methodology.

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