I don't know, because I'm not in that position, however, what I do know is that the tax returns show the cash element of a loan as being classed as income spread over the 72 month period.
Again, second hand info, but my source was asked to sign the new contract, the reasoning given was so that you're only liable to be taxed on the cash.
Will this guy (AE) get a shock when he gets his 6th tax bill for the 550k non-cash element? Well, apparently not; it isn't shown anywhere on your payroll, hasn't passed through your account, and consequently isn't reported income when CX send off their gubbins to the IRD in April.
Conjecture, but thats how I see it, and how it has been explained to them (I appreciate your point re. taxation advice), caveat emptor as always.