The board of New York-based American International Group Inc. (AIG) has rebuffed plans by CEO Robert Bensmosche to use the company’s private jets for personal use, according to a published report.
Citing unnamed sources, Bloomberg reported that the board rejected a request to use the aircraft by Bensmosche, who was hired last month to turn around the beleaguered insurance giant.
Bensmosche raised hackles in August when he retreated to his villa in Croatia for a vacation days after taking the helm at AIG, which has received $182 billion in government bailout money. Bensmosche’s $7 million annual salary has also come under fire.
This, AIG enacted a luxury expenditure policy intended to ensure its expenses are appropriate and meet the company’s responsibilities to the American taxpayers.
“The AIG corporate aircraft is available for travel solely related to business purposes,” it states. “The use of the corporate aircraft for personal matters is strictly prohibited.”
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