TIM LESMEISTER - Trade Show Executive
TIM LESMEISTER - Trade Show Executive
TIM LESMEISTER - Trade Show Executive
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Society of Association <strong>Executive</strong>s<br />
(ASAE) and The Center for Association<br />
Leadership.<br />
The CIC said it endorsed the guidelines<br />
on February 17 because conventions,<br />
trade shows and other business events are<br />
critical to the performance of individual<br />
companies and the entire U.S. economy.<br />
Exhibitions Generate Sales<br />
“Exhibitions provide a wealth of<br />
industry information and contacts under<br />
one roof and support the sales efforts<br />
critical to driving revenue to companies<br />
already hurting in the current economy,”<br />
the statement said. “Limiting these events<br />
Event Travel Guidelines<br />
The exhibition and travel industries developed a list of<br />
guidelines for travel to meetings and events for companies<br />
receiving assistance from the Troubled Asset Relief Program<br />
(TARP). The guidelines are a response to criticism from<br />
elected lawmakers in Washington to the travel practices of<br />
TARP recipients.<br />
Model Board Policy for Approval of Meetings, Events<br />
and Incentive/Recognition Travel<br />
• General policy statement: The CEO shall be responsible<br />
for implementing adequate controls to assure that meetings,<br />
events and incentive/recognition travel organized by the<br />
company serve legitimate business purposes and are costjustified.<br />
• All proposed meetings, events and incentive/recognition<br />
travel organized by the company must serve one or more<br />
specified legitimate business purposes. Each proposed<br />
meeting, event or incentive/recognition travel with a cost<br />
exceeding $75,000 must be supported by a written business<br />
case identifying a specific business purpose.<br />
• Total annual expenses for meetings, events and incentive/<br />
recognition travel shall not exceed 15% of the company’s<br />
total sales and marketing spend.<br />
• The amount spent for an employee performance incentive/<br />
recognition event shall not exceed 2% of the total<br />
compensation of eligible participants or 10% of total award<br />
earners’ compensation.<br />
• The process for approving meetings, events and incentive/<br />
recognition travel, and the procedures for assuring<br />
adherence to this policy, will be subject to independent audit<br />
to confirm policy adherence.<br />
• At least 90% of incentive program attendees shall be other<br />
than senior executives from the host organization.<br />
• Performance incentives shall not promote excessive or<br />
unnecessary risk-taking or manipulation of financial results.<br />
• All internal meetings or events attended only by senior<br />
executives and/or board members shall be devoted<br />
would curtail the hundreds of millions<br />
of dollars worth of business transacted.<br />
These events are supported by thousands<br />
of U.S. corporations that value the<br />
opportunity to do business, engage in<br />
education and create new relationships for<br />
their success.”<br />
The Educational Aspect<br />
The CIC also pointed out that<br />
conferences and meetings offer training<br />
and professional education, such as<br />
Continuing Education Units and<br />
Continuing Medical Education credits<br />
that are required for various licenses.<br />
“This education is critical to keeping<br />
America’s workforce at the top of its game<br />
in a competitive global marketplace,” the<br />
statement said.<br />
The Economics of the Event Business<br />
An equally important impact of<br />
business travel, the CIC said, is the<br />
economic benefit that comes in the form<br />
of jobs, tax revenues and direct spending<br />
in host cities. “Cutting back on travel<br />
kills jobs at a time when job preservation<br />
and creation is critical,” the statement<br />
said.<br />
Reach Karen Kotowski, chief<br />
operating officer, at (571) 527-3116 or<br />
kkotowski@conventionindustry.org<br />
to specific business purposes, and participating senior<br />
executives shall be responsible for any expenses incurred for<br />
non-business related activities.<br />
• The CEO of the company shall certify to the board that<br />
the policies are being followed and are sufficient to provide<br />
reasonable assurance that the company’s expenditure for<br />
such purposes are not excessive.<br />
• These policies shall be subject to modification only with<br />
board approval stating the specific business rationale for the<br />
change in policy.<br />
Examples of Legitimate Business Purposes for Meetings,<br />
Events, Incentive/Recognition Travel<br />
• <strong>Trade</strong> shows and similar events that bring prospective<br />
buyers and sellers together.<br />
• Effective product launches to educate sales force, channel<br />
partners and customers.<br />
• Sales conferences and employee meetings to align vision,<br />
strategy and tactics.<br />
• Training and staff development meetings.<br />
• Employee recognition programs to motivate and reward<br />
employees for achievement and productivity.<br />
• Professional conferences that provide networking,<br />
education and best-practice sharing.<br />
• Performance incentives with clear rule structures that<br />
are designed to motivate and reward high performers<br />
for exceeding established goals that generate incremental<br />
revenue growth for their respective organizations and that<br />
are beyond the investment in the program.<br />
• User conferences for customers and product development<br />
events for research and development purposes.<br />
• Corporate-sponsored events that further charitable purposes.<br />
• Strategic, business and financial planning and review<br />
meetings.<br />
• Employee meetings as a result of company mergers or<br />
acquisitions for the purpose of alignment of products,<br />
brands and cultures.<br />
Continued on page 11<br />
www.<strong>Trade</strong><strong>Show</strong><strong>Executive</strong>.com <strong>Trade</strong> <strong>Show</strong> <strong>Executive</strong> March 2009 9