Companies that received billions of dollars of government aid are now publishing policies meant to limit lavish expenses, following revelations about costly private jets, spa retreats and other corporate excess at firms receiving taxpayer money. The Treasury Department required financial institutions and automakers that received money from the $700 billion Troubled Asset Relief Program to post their new polices covering “excessive or luxury expenditures” on their corporate Web sites. The policies posted Monday ranged from blanket statements of proper spending practices by company employees, to how much to tip a hotel doorman while traveling, said Associated Press. The list includes companies that took some of the largest chunks of government aid — including insurer American International Group, Citigroup, Bank of America, General Motors. and Chrysler. The policies are part of a broad swath of government standards at bailed-out companies designed to help them stay afloat during the financial crisis. That includes an ongoing Treasury review of the pay packages for executives at major TARP recipients. Chrysler Financial Services, which has repaid $1.5 billion in federal loans, provided a15-page policy that prohibits employees traveling on business from being reimbursed for lunch on trips that don’t require an overnight stay and directs employees to fly coach if their flight is less than four hours. Employees also can’t expense country club fees, massages and spa services, hotel frequent-guest programs and tuxedos or evening gowns. Tips are limited to 20 percent, and employees must choose mid-sized rental cars. Under the policy, Chrysler Financial will not reimburse employees for personal items lost while traveling on business. Meanwhile, AIG said “Celebratory events are prohibited, except those acknowledging key AIG career milestones. Holiday parties and events must be approved by the Business Unit’s CEO and should, where practicable, be held in AIG facilities.”
Bailed-out Companies Must Now Detail Expense Policies
The Treasury Department required financial institutions and automakers that received money from the $700 billion Troubled Asset Relief Program to post their new polices covering “excessive or luxury expenditures.”
September 15, 2009