Big TARP banks ran into some PR issues regarding executive and sales events that were stereotyped, to some degree, as a luxury junket for the top dogs. The new executive compensation rules that the Treasury handed down that governed only the top TARP banks were fairly mild. As reported by Corporate Meetings & Incentives, it stated: "The board of directors (must) determine what are excessive and luxury expenditures." That includes entertainment or events, office and facility renovations, and aviation or other transportation services.

Policies should also be "reasonably designed to eliminate excessive and luxury expenditures." While this can only be enforced for the TARP banks, it is reasonable for other boards to use this as a model--the way nonprofits have adopted Sarbanes-Oxley even though they are not required to comply. Shareholders increasingly are sensitive to this. It's always a good idea to develop firm policies in areas that are perceived, fairly or not, to be rife with abuse. 

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- here's the article

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