Governance Professionals of Canada

22 Apr 2008 3:01 PM

Message # 21415

Anonymous

A Publicly traded large corporation member askes:

"I am looking for some precedent for a Directors’ Travel Policy or just a Travel Policy companies have adopted."

22 Apr 2008 3:07 PM

Reply # 21416 on 21415

Anonymous

Economy class travel for all domestic flights. Business class authorised for international travel of more than 4 hours.

22 Apr 2008 3:09 PM

Reply # 21417 on 21415

Anonymous

A Public Medium Company Member writes:

WE DO NOT HAVE A DIRECTORS TRAVEL POLICY BUT WE DO HAVE ONE FOR EXECUTIVES WHICH RESTRICTS MORE THAN FOUR EXECUTIVES (VP AND UP) FROM TRAVELING TOGETHER 0N A PLANE

22 Apr 2008 3:10 PM

Reply # 21418 on 21415

Anonymous

I am attaching a link to our webpage that contains our policy:

http://www.canadapost.ca/corporate/about/governance/hopistality_expenses-e.asp

Please do not hesitate to contact me by click here if you need any explanation

22 Apr 2008 3:14 PM

Reply # 21419 on 21415

Anonymous

A Large Cooperative Financial Member Writes:

Director Meeting Allowance

a) Meeting Attendance

    In addition to honoraria, Directors may claim a per meeting fee of $500 for attendance at each meeting of the Board or Committees of the Board and for other meetings otherwise authorized under policy, regardless of whether meetings are held on the same day as other meetings.

    T-4 Revenue Statements will be issued for all such allowances unless payment is made to the organization which the Director represents.

    Each Peer Group/Regional Director may claim per diem allowance, including travel days, of $500 for attendance at meetings of credit unions in that Peer Group/Region.

    Members of working or advisory committees who are not board members may claim a per diem of $200.

b) Travel Per Diem

    Each director may claim a per diem allowance for travel days for attending meetings of the Board, Committees of the Board, and for other meetings otherwise authorized under policy.

c) Teleconference Meeting Attendance

    Each Director may claim $500 per meeting for a telephone conference call meeting of the Board of Directors and other Board committees.

2.6 Allowable Expenses

a) Travel Expenses

    Travel expenses include: airfare, ferry fare, automobile rental, taxi fare, personal automobile mileage, and parking. Receipts are required.

    Actual cost of public transportation based on economy class airfare. When other modes of travel are necessary, actual costs are to be charged. First class air travel will be authorized when deemed necessary or appropriate by the Chairperson on trips the duration of which exceed two hours or in other extraordinary circumstances. Receipts are required.

    Use of personal automobile at 50 cents per km for the first 5,000 kilometres and 44 cents per km thereafter, plus cost of tolls and parking.

b) Meals

    Actual expenses, including gratuities, with receipts and list of guests provided for all expenses over $25.

c) Hotel Accommodation

    Cost of accommodation at actual cost. Receipts are required.

d) Business Development and Entertainment

    The actual cost of such expenses, supported by receipts, will be paid. The names of guests and the circumstances necessitating the expenditure are also required.

e) Other Expenses

    Reimbursement at actual cost. Receipts are required for items in excess of $20. Allowable miscellaneous expenses include:
reasonable laundry and dry cleaning expenses
reasonable long distance calls to the Director’s home or business office
reasonable childcare expenses
basic monthly Internet access costs
software and upgrades
communications hardware and upgrades.
f) Expenses of Spouse/Companion
    Expenses of a spouse/companion at Regional District business meetings, seminars, lectures, speeches or conventions may involve banquets, luncheons, dinners or receptions where attendance of the spouse/companion of the Director might be advantageous. Expenses of the spouse/companion will be covered on the same basis as those established for Board members, exclusive of the per diem allowance.

    The spouse/companion of a Director will be allowed, at the expense of Credit Union Central of British Columbia, to attend functions designated by either the Chairperson or the Board of Directors.

    The Chairperson will have final discretion on any matters pertaining to the payment of spouse/companion expenses.
2.7 Meetings and Committees

In general, meetings attended in person by the Directors or by teleconference are subject to a per meeting rate of $500.
a) General Meeting and Fall Conference
    Actual accommodation, meals, travel expenses, and per meeting fees will be paid, including per diem for travel days.

22 Apr 2008 3:16 PM

Reply # 21420 on 21415

Anonymous

A Small Public Company Member writes:

Please see attached our policy for travel and entertainment. This policy was adapted from a very large corporation's policy where I previously worked.

22 Apr 2008 3:27 PM

Reply # 21424 on 21415

Anonymous

A Large government agency member writes

The Board of Management of the Canada Revenue Agency (CRA) has a section of its Governance Manual entitled “Compensation and expenses” that covers travel and accommodations for Board members. This section is based on the CRA Travel Policy. The relevant portions are attached below:

2. EXPENSES

2.1 Section 20 of the Canada Revenue Agency Act allows that Board of Management Directors, other than the Commissioner, are entitled to “be paid reasonable travel and living expenses incurred by them in the course of performing their duties while absent from their ordinary place of residence.” The attached documents, Guidelines for Travel and Living Expenses and Guidelines on Hospitality, are based on CRA’s policies in these areas and are intended to provide some guidance to members of the Board of Management.

Guidelines for Travel and Living Expenses

1. Travel

1.1 Air Travel

1.1.1 Trips 300 kilometres or more should be by air. Trips of less than 300 kilometres should not normally be by air except when specifically pre-authorized.

1.1.2 Board members will be afforded the same treatment as members of the Agency’s Executive Cadre. The general benchmark is that, should a Board member not travel by the authorized given mode (usually air travel), the cost of travel to Ottawa (or to the location of the Board or Committee meeting) should not exceed the cost of the authorized given mode.

1.1.3 Board members have the option of travelling business class but only when the distance they must travel is 850 air kilometres or more one-way, and the flights that are taken between destinations do not include stop-overs.

1.1.4 The Chair of the Board of Management is afforded the same allowance as the Commissioner of the Agency. The general benchmark is that the cost of travel should not be greater than that of a return airfare (either economy or business class) from the Chair’s place of residence to Ottawa (or to the location of the Board or Committee meeting). The Chair has the discretion to choose business class travel for all trips but not first class travel. The discretion of the Chair to use business class travel should, however, be exercised with prudence and probity, and it must be borne in mind that all expenditures must further Agency objectives.

1.2 Surface Travel

1.2.1 Rental cars may be used when this mode of travel is deemed to be more economical and practical and, in this regard, a cost comparison with other modes of travel should be submitted.

1.2.2 For travel using a privately-owned vehicle, the maximum amount reimbursable (kilometric and other expenses) shall not exceed the cost that would have been incurred using available commercial transportation. Details on the kilometric rates that are in effect are available from the Corporate Secretary upon request.

1.2.3 Expense claims for taxi fares and parking fees are based on the honour system but receipts may be submitted if preferred.

1.2.4 Limousine services may be used where there is an overall saving in the cost that would have been incurred if other modes of transportation were to be used, or when an alternate mode of transportation is unavailable.

2. Hotel Accommodation

2.1 Board members will stay at the same hotel during Board meetings and, in most cases, a group rate will be negotiated. Due regard will be given to the choice of hotel and the negotiation of a reasonable rate. Key considerations for the choice of hotel will be comfort and convenience.

2.2 Where a group rate is not possible, all Board members, including the Chair, will be accommodated in a standard hotel room at the regular government rate.

2.3 In situations where the Chair may require space for a meeting or for hospitality, access to a small suite in the hotel may be provided.

Meals

3.1 All Board members, including the Chair, may bill actual expenses for meals or, alternatively, they may claim normal CRA per diem expenses, less any meals provided officially (e.g., meals provided during Board meetings). Actual and reasonable meal expenses must be based on receipts and shall not include alcohol. Per diem rates for meal expenses are given in the Table “Meals and Allowances”, which is provided as an attachment following the Guidelines on Billing.

4. Incidentals

4.1 All Board members, including the Chair, may claim CRA’s normal per diem incidental expense allowance. The incidental allowance is cumulative throughout the duration of a trip and is provided whether or not actual expenses are incurred. Alternatively, Board members may claim actual incidental costs incurred but such costs are reimbursed only on the basis of receipts. If actual costs are claimed the per diem expense allowance may not be claimed at all during the whole trip. The per diem rate for the incidental expense allowance is given in the Table “Meals and Allowances”, which is provided as an attachment following the Guidelines on Billing.

4.2 The Agency cannot reimburse Board members for the costs of business-related calls made from their hotel rooms. Only calls that are CRA-related and for which receipts are provided may be claimed as expenses by Board members. Notwithstanding these policies, Board members should note that the Agency’s per diem incidental expense allowance is meant to cover business-related calls.

5. Receipts

5.1 Receipt means an original document or certified true copy showing the amount of the expenditure, itemized where possible, the date the receipt was issued and an indication that payment was made.

22 Apr 2008 3:30 PM

Reply # 21425 on 21415

Anonymous

A Public traded large cap issuer member writes:

“no more than three officers, three directors or two in-line management staff are to fly together on the same commercial flight”. “In-line” management refers to management staff who fall into a direct reporting relationship, usually within a group or department.   It also states that “the number of senior or key staff who fly together on chartered flights should be kept to a minimum”.

In addition the following restrictions are in place specifically for the Board:

1.     The Chairman and the CEO should not travel together, either on commercial or charter flights.

2.     No more than five Directors should travel on the same flight .

3.     All members of a single Board Committee should not travel together, either on commercial or charter flights.

22 Apr 2008 3:32 PM

Reply # 21427 on 21415

Anonymous

A public traded large issuer member writes:

Yes, we have a travel policy for directors. Each director is paid $1,500 when he or she travels outside of his or her home province or state, or travels more than a total of three hours, round trip, to attend a company meeting or site visit.

22 Apr 2008 3:38 PM

Reply # 21428 on 21415

Anonymous

A medium venture company member writes:

Click here for attachment.

Traveling Policy