Publications

Corporate Partner A.J. Kess and Corporate Associates Janice Brunner and Yafit Cohn co-authored an article in Law360, “A Lesson In Properly Identifying And Reporting Exec Perks.” While perquisite analyses are often inherently fact-specific, the article provides some factors a company might consider when determining whether any given item should be deemed a perk. The article also discusses practices and procedures companies may consider adopting in order to reasonably ensure that perquisites are properly identified and disclosed to investors. Having established policies and procedures for identifying and recording perquisites is a significant step toward ensuring that perquisites are properly disclosed.

Given the fact-sensitive and nuanced nature of assessing whether, and to what extent, certain items provided to executives are deemed to be perks, as well as the sometimes small amounts involved, it is crucial that public companies develop thoughtful principles and institute robust policies to identify and properly disclose perks. While, as noted above, perquisite analyses are often inherently fact-specific, some factors a company might consider when determining whether an item is “integrally and directly related” to the performance of an executive’s duties might include:

To read the article, please click here (subscription required).