“Governance and Compliance Considerations for Executive Officer Security Arrangements” from Covington & Burling addresses board oversight of executive security, public company SEC disclosure obligations (including valuation/quantification), and tax and employee benefits implications of executive security arrangements.Polsinelli’s “Tax and Disclosure Considerations Related to Executive Security Benefits” provides an overview of the potential tax benefits afforded by 26 CFR § 1.132-5(m) relative to personal executive security. The resource summarizes the alternative approaches to meeting the “overall security program” requirement that enables the company to deduct certian eligible expenses.
See this Debevoise & Plimpton memo (#1: “Understand Securities Disclosure and Tax Implications of Executive and Director Perks”); our recent report: “Executive Security is Now a Business Necessity”; and additional resources on our Executive Pay page » Perks.
This post first appeared in the weekly Society Alert!