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Wall Street still flying corporate jets
Does this get anyone riled up?
| quote: | NEW YORK – Crisscrossing the country in corporate jets may no longer fly in Detroit after car executives got a dressing down from Congress. But on Wall Street, the coveted executive perk has hardly been grounded.
Six financial firms that received billions in bailout dollars still own and operate fleets of jets to carry executives to company events and sometimes personal trips, according to an Associated Press review.
The jets serve as airborne offices, time-savers for executives for whom time is money — lots of money. And some firms are cutting back, either by selling the planes or leasing them.
Still, Wall Street's reliance of the rarified mode of travel has largely escaped the scorn poured on the Big Three automakers.
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But an AP review of Securities and Exchange Commission filings and FAA records offers a glimpse of Wall Street firms' ownership and use of private aircraft. Among the findings:
• CITIGROUP: Has a wholly owned subsidiary, Citiflight Inc., that handles air travel for executives. Citi spokeswoman Shannon Bell refused to comment on the size of the firm's fleet but said it has been reduced by two-thirds over the past eight years. FAA records show four jets and a helicopter registered to the company.
In 2007, then-CEO Charles Prince used company aircraft for personal trips for security reasons. Those trips cost the company $170,972 for that year. Current CEO Vikram Pandit began reimbursing the company for all personal travel on company planes since being appointed in November 2007.
Use of Citigroup's aircraft currently is confined to a "limited number of executives," Bell said. "Executives are encouraged to fly commercial whenever possible to reduce expenses."
• MORGAN STANLEY: Has reduced its executive jet fleet size from three planes to two since 2005, company spokesman Mark Lake said. FAA records show two Gulfstream G-Vs as registered to the company.
In 2007, CEO John Mack's personal use of company aircraft totaled $355,882, according to a February proxy filing. Mack is required to use company aircraft for personal trips for security reasons.
• JPMORGAN: Registered as the owner of four Gulfstream jets, including a 2007 ultra-long range flagship G550 model, FAA records show. A G550 ordered for delivery that year would have cost roughly $47.5 million.
CEO Jamie Dimon is required to use company aircraft for personal trips; In 2007, his personal use of company jets totaled $211,182, according to a May filing with the SEC. Company spokesman Joe Evangelisti refused to comment on whether the bank has changed its policy on corporate aircraft use since accepting $25 billion in TARP money.
• BANK OF AMERICA: Registered as the owner of nine planes, including four Gulfstreams, FAA records show. Company spokesman Scott Silvestri refused to say whether the company has changed its policy on corporate aircraft use since taking $15 billion in bailout money.
CEO Kenneth Lewis, also required to use company aircraft for personal trips, racked up $127,643 in such travel last year, according to a March filing with the SEC.
• WELLS FARGO: Owns a single jet that "is strictly for business purposes under appropriate circumstances," spokeswoman Julia Tunis Bernard said. "No (government) funds will be used for corporate jet travel," she added. |
http://news.yahoo.com/s/ap/20081222/ap_on_bi_ge/meltdown_corporate_jets
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