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Bailed-out companies begin posting limits on luxury expenditures
LA Times ^ | 9/12/2009 | Tomoeh Murakami Tse

Posted on 09/11/2009 11:21:34 PM PDT by Saije

New York - Chrysler Financial employees traveling on business can no longer be reimbursed for lunch on trips that don't require an overnight stay. If flying on business, they must travel coach if the flight is less than four hours. Tips to baggage handlers shouldn't exceed $2 per bag. The $4 cost of an in-flight movie? Not reimbursable.

The company's new expense rules, posted on its website Friday, are among a handful of policies that have been made public so far as hundreds of companies receiving federal rescue funds scramble to meet a deadline Monday to put in place policies on "excessive or luxury expenditures."

Under rules issued by the Treasury Department in June, the boards of companies receiving federal assistance must adopt policies on luxury expenditures -- including entertainment, office renovations and air travel -- and make them available online.*****

Chrysler Financial details what type of rental car an employee should drive while on a business trip (a mid-size), how to calculate reimbursable gas mileage on trips combining business and pleasure, and the circumstances under which it is permissible to use the phone in one's hotel room.

The 15-page policy comes with two appendixes, one listing "unallowable" expenses (country club fees, hotel frequent-guest programs, birthday cakes and cards, shoeshines) and limits on tips (up to 20% of the total bill, excluding tax, for room service, up to $2 for buffet dining, $5 for a doorman, no tip for a concierge).

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Government
KEYWORDS: bailout; chrysler; expenses; tarp
With this kind of economizing we should have our money back in no time.
1 posted on 09/11/2009 11:21:34 PM PDT by Saije
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To: Saije

I understand the concerns, that these companies should not waste money, however:

I find government controls repulsive, and I think it would have been healthier, for liberty and the economy, had these firms simply gone to bankruptcy court!

No bankruptcy judge would ever deny the fact that firms must compete, for top talent.


2 posted on 09/11/2009 11:24:43 PM PDT by Kansas58
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To: Kansas58

Here’s an analogy of “unnecessary expenses” as told by a small business owner I once worked for. We were a company of >50 at the time.

When he sent me and a co-worker to a New York conference and series of sales calls he summed it up like this. “You obviously have traveled for business in your experience. I know that companies typically won’t let you expense in room movies and cheap forms of entertainment. They will let you expense your meals and whatever bar tab you rack up though. I’d rather pay for an in room movie, not porn, than a $100 bar tab and have you well rested and not hungover. I’d rather spend $8 and have you productive the next day than $100 and have you be worthless as dog crap on my shoe. When I hired you I did so because I trust your judgment and am willing to continue to do so.”

If more businesses thought like that business trips would be more productive across the board.


3 posted on 09/11/2009 11:30:03 PM PDT by PittsburghAfterDark
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To: Saije

The current financial crisis is opening up a whole window into “corporate culture” where luxury hotels, porn and bar tabs, and all manner of excess are seen as “just how business is done”. And if you find yourself sinking Joe Taxpayer will be squeezed to bail your sorry asses out. Disgusting.


4 posted on 09/11/2009 11:40:24 PM PDT by SpaceBar
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To: Saije

Since 1971, I’ve travelled as an executive for my companys on policies that are much more stringent.

At least, I’ve not been required to bunk with a co-worker since 1963!


5 posted on 09/11/2009 11:44:13 PM PDT by aShepard
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To: Saije

Since 1971, I’ve travelled as an executive for my companys on policies that are much more stringent.

At least, I’ve not been required to bunk with a co-worker since 1963!


6 posted on 09/11/2009 11:46:10 PM PDT by aShepard
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To: Saije

I’m shocked that alot of these things weren’t already common practice. Ohhh no what are the little primadonnas going to do now.


7 posted on 09/12/2009 12:53:20 AM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: Kansas58

Yeah I guess they wouldn’t lose the talent of failure that they have now...


8 posted on 09/12/2009 12:54:26 AM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: Tempest

If you want to avoid federal rules and regulations, you need to try to avoid asking for federal handouts...


9 posted on 09/12/2009 12:55:38 AM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: Tempest

That creates a curious catch 22, no? The feds through bad policy decisions create economic situations that destroy businesses and then offer to “save” you. Do you drown or grab the life preserver?

Don’t answer like it is imaginary. Think about it.

Plus, what of those banks that were blackmailed into accepting funds.

This is a slippery slope and looked what happened to our school system that accepted federal money, taken from local tax payers. They’ve forced the camels nose under many tents and you pay for the entire herd.


10 posted on 09/12/2009 1:49:38 AM PDT by 1010RD (First Do No Harm)
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To: Tempest

That creates a curious catch 22, no? The feds through bad policy decisions create economic situations that destroy businesses and then offer to “save” you. Do you drown or grab the life preserver?

Don’t answer like it is imaginary. Think about it.

Plus, what of those banks that were blackmailed into accepting funds.

This is a slippery slope and looked what happened to our school system that accepted federal money, taken from local tax payers. They’ve forced the camels nose under many tents and you pay for the entire herd.


11 posted on 09/12/2009 1:52:05 AM PDT by 1010RD (First Do No Harm)
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To: Saije
I can recall posting in despair over FReepers who were voicing the populist view that these executives should have their bonuses and salaries rolled back. I said at the time that this would be the most expensive money they ever saved the taxpayer and so it has proven.


12 posted on 09/12/2009 1:58:31 AM PDT by nathanbedford ("Attack, repeat, attack!" Bull Halsey)
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To: 1010RD

Your kidding right?

Now incompetent companies are not held resposible but blame the government for eating their homework...

*sigh*


13 posted on 09/12/2009 2:12:50 AM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: Saije

Chrysler is still in business????

Who knew?


14 posted on 09/12/2009 4:05:37 AM PDT by CapnJack
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