Training of staff in the scope, definition and valuation of perquisites and related person transactions.The identification, documentation and tracking of related person transactions, including procedures to identify relevant covered persons, such as relatives of directors and executive officers and their respective businesses.The identification, valuation, documentation and tracking of other perquisites.The use of corporate-owned or charter aircraft, including proper accounting for any personal use.TakeawaysĬompanies should review their internal and disclosure controls and policies and procedures to make sure they address: Otherwise, an item is a perquisite or personal benefit if it confers a direct or indirect benefit that has a personal aspect, without regard to whether it may be provided for some business reason or for the convenience of the company, unless it is generally available on a non-discriminatory basis to all employees.
Many of the enforcement actions resulted in significant financial penalties and, in some cases, the retention of independent consultants to review policies, procedures, controls and training relating to reporting and disclosure.Īccording to the SEC, an item is not a perk or personal benefit if it is integrally and directly related to the performance of an executive’s duties. As discussed under “Deeper Dive” below, most of the cases involve companies that failed to adopt appropriate controls or policies to identify or track such matters – providing cautionary tales of inattention for public companies. Over the past few years, the SEC has renewed its focus on public company failures to disclose perquisites and related person transactions.
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