New expense policy governs excessive expenses
Fri 11 Sep 2009
On Sept. 13, a new policy will be posted to the Bank of America Internet site to provide further clarity around expenses that may seem excessive or luxurious.
The "Excessive or Luxury Expenditures Policy" supplements other policies and addresses:
* What may be considered an excessive or luxury expense
* What is prohibited and the applicable reporting process
* How to gain pre-approval for any questionable expenses
* Mandatory results of non-compliance with this policy
"This new policy reinforces the overall Bank of America expense philosophy," said Joe Price, Chief Financial Officer. "We've always been recognized as a leader in managing expenses and it is the responsibility of each and every associate to ensure that we continue to manage expenses, grow our business and deliver a return to our shareholders."
Activities governed under this policy include:
1. Entertainment or events
2. Office or facility renovations
3. Aviation or other transportation services
4. Other similar activities or events to the extent such expenditures in these categories are not reasonable expenditures for staff development, reasonable performance incentives, or other similar reasonable measures conducted in the normal course of the corporation's business operations.
For the purpose of this policy, excessive expenses are considered beyond the normal reasonable limits or lacking reasonable restraint for the normal course of the corporation's business. As such, expense limits may differ between the lines of business.
The new policy is a requirement of the Federal government's Troubled Asset Relief Program (TARP) and is mandatory for all participating institutions