Treasury Department Links Corporate Aviation to "Luxury Expenditures"

Last week, the U.S. Treasury Department released a series of restrictions to executive compensation aimed at companies receiving government bailout money. Named specifically in the language were AIG, Bank of America and Citigroup. The measures call for tighter controls on "luxury expenditures," though they do not specifically prohibit ownership or use of corporate aircraft. According to the Treasury Department, the measures are meant to ensure "that public funds are directed only toward the public interest in strengthening our economy by stabilizing our financial systems and not toward inappropriate gain." Under the provisions, company policies involving such luxury expenditures (including aviation services) need to be established by the board of directors.